Annual Report07

Adjust Spine as per required
Glenmark Pharmaceuticals Limited
International Operations
India
20. Afghanistan
45. Iraq
70. St. Lucia
Brazil
21. Angola
46. Ivory coast
71. Sudan
22. Barbados
47. Jamaica
72. Tanzania
23. Belarus
48. Laos
73. Thailand
24. Belize
49. Madagascar
74. Togo
25. Benin
50. Malawi
75. Trinidad & Tobago
26. Bolivia
51. Maldives
76. Tunisia
27. Botswana
52. Mali
77. UAE
28. Burkina Faso
53. Mauritania
78. Uganda
29. Burundi
54. Mauritius
79. Venezuela
30. Cameroon
55. Moldova
80. Yemen
31. Central African Republic
56. Mozambique
81. Zambia
32. Chad
57. Myanmar
82. Zimbabwe
33. Chile
58. Nepal
83. Uzbekistan
34. Congo Brazzaville
59. Nicaragua
84. Turkmenistan
35. Costa Rica
60. Oman
85. Kyrgyzstan
36. Dominica
61. Papua New Guinea
86. Honduras
37. Ecuador
62. Peru
87. Egypt
38. Eritrea
63. R D Congo
88. Tajikistan
39. Ethiopia
64. Rwanda
89. Azerbaijan
40. Fiji
65. Senegal
41. Grenada
66. Seychelles
42. Haiti
67. Singapore
43. Hong Kong
68. Sri Lanka
44. Indonesia
69. St. Kitts
Regional / Representative Offices

1. Argentina
2. Australia
3. Brazil
4. Cambodia
5. Czech Republic
6. Dominican Republic
7. Ghana
8. Kazakhstan
9. Kenya
10. Malaysia
11. Nigeria
12. Philippines
13. Russia
14. South Africa
15. Switzerland
16. UK
17. USA
18. Vietnam
19. Ukraine
www.glenmarkpharma.com
Annual Report
2006-07
synapse
Czech Republic
Printed at Print House
Manufacturing Sites
As on August 2007
Research Focused
Glenmark firmly believes that original drug discovery research is
imperative for companies to succeed in the post-GATT era.
The Company's cutting-edge research efforts in the therapeutic
segments of metabolic disorders, inflammation and oncology
have yielded several breakthroughs that could redefine the
standard of therapy for specific indications. In a span of seven
years, Glenmark has developed a pipeline of 11 molecules; three
of which are in clinical development and the other eight are at
various stages of preclinical development and discovery.
The Company has also moved ahead in research on
biopharmaceuticals at its research facility in Switzerland.
In addition to new drug discovery, Glenmark also supports its
formulations and bulk drug activities through research. The
Company's research teams across its R&D centers are focused
on developing formulations for launch as generics and branded
generics across the globe. Glenmark's process research
scientists develop low cost processes for products in advance
of patent expiry and also contribute to the drug discovery efforts
by developing and scaling up active pharmaceutical ingredients
(APIs) for its novel drug candidates.
Global
Glenmark presently markets its products in over 85 countries
across the globe. The Company's focus is to build a marketing
presence in these geographies over the next 5-7 years thus
laying a foundation for selling its own novel products once they
are ready to be marketed. In addition, Glenmark markets its APIs
in over 50 countries across the globe, sources its inputs from
global suppliers and also recruits the best talent globally to
localize its skills to the several markets in which it operates.
Integrated
Glenmark is a truly integrated pharmaceutical Company having
in-house capabilities to develop and manufacture formulations,
API and conduct new drug discovery research. The Company's
business model involves a fundamental risk management
initiative, which has translated into a lower cost structure and a
direct control over an increasing number of links in the value
chain. Additionally, this approach has also created a revenue
source from each of these links, namely, potential licensing
opportunities for new drugs, a growing presence as an API
supplier and formulations player in various markets.
Research-Focused
Annual Report 2006-2007
Global
Integrated
Research Focused
Glenmark firmly believes that original drug discovery research is
imperative for companies to succeed in the post-GATT era.
The Company's cutting-edge research efforts in the therapeutic
segments of metabolic disorders, inflammation and oncology
have yielded several breakthroughs that could redefine the
standard of therapy for specific indications. In a span of seven
years, Glenmark has developed a pipeline of 11 molecules; three
of which are in clinical development and the other eight are at
various stages of preclinical development and discovery.
The Company has also moved ahead in research on
biopharmaceuticals at its research facility in Switzerland.
In addition to new drug discovery, Glenmark also supports its
formulations and bulk drug activities through research. The
Company's research teams across its R&D centers are focused
on developing formulations for launch as generics and branded
generics across the globe. Glenmark's process research
scientists develop low cost processes for products in advance
of patent expiry and also contribute to the drug discovery efforts
by developing and scaling up active pharmaceutical ingredients
(APIs) for its novel drug candidates.
Global
Glenmark presently markets its products in over 85 countries
across the globe. The Company's focus is to build a marketing
presence in these geographies over the next 5-7 years thus
laying a foundation for selling its own novel products once they
are ready to be marketed. In addition, Glenmark markets its APIs
in over 50 countries across the globe, sources its inputs from
global suppliers and also recruits the best talent globally to
localize its skills to the several markets in which it operates.
Integrated
Glenmark is a truly integrated pharmaceutical Company having
in-house capabilities to develop and manufacture formulations,
API and conduct new drug discovery research. The Company's
business model involves a fundamental risk management
initiative, which has translated into a lower cost structure and a
direct control over an increasing number of links in the value
chain. Additionally, this approach has also created a revenue
source from each of these links, namely, potential licensing
opportunities for new drugs, a growing presence as an API
supplier and formulations player in various markets.
Research-Focused
Global
Integrated
Dyax Corp. and Glenmark enter into Funded Research

Agreement for Discovery of Therapeutic Antibodies
Dyax Corp. and Glenmark entered into a funded research
agreement for the discovery of therapeutic antibodies. Under the
terms of this agreement, Dyax will perform funded research to
identify therapeutic antibodies for three targets provided by the
Company. The agreement also provides the Company with
sublicenses to relevant third party antibody phage display
patents that may be used with Dyax's technology. The Company
anticipates three highly promising New Biological Entities
coming out of this collaboration.
Highlights 2006-07
Glenmark Purchases Rights to Two Therapeutic

Antibodies from Chromos*
Glenmark completed the purchase of two NBE's CHR-1103 and
CHR-1201 (both are humanized monoclonal therapeutic
antibodies) from Chromos Molecular Systems Inc. (Chromos) of
British Columbia, Canada. The Company purchased all rights to
the two products as well as rights to use Chromos' proprietary
ACE system technology for cell line development for use with
respect to CHR-1103 and CHR- 1201. CHR-1103 and CHR-1201
are part of a validated class of drugs known as SAMI's (Selective
Adhesion Molecule Inhibitors). CHR-1103 is a broad
anti-inflammatory agent with a novel mechanism of action, being
developed initially to treat acute multiple sclerosis, for which
there is no treatment approved at present. CHR-1201 is an antithrombolytic humanized monoclonal antibody, which Glenmark
plans to develop initially to treat acute stroke.
Merck KGaA and Glenmark Pharmaceuticals Announce

Collaboration Agreement on DPPIV Inhibitor for Type 2
Diabetes
Glenmark concluded an agreement for GRC 8200 (DPP-IV
inhibitor for type II diabetes) with Merck KGaA, Germany where
Merck will develop and commercialize GRC 8200 for markets in
North America, Europe and Japan. The Company will retain
exclusive rights for the Indian market and will co-commercialize
in the rest of the countries. The total deal size is close to
USD 240 Mn and the Company received the first payment of
USD 31 Mn in FY 2007.
Glenmark's Lead Candidate for Pain, GRC 6211, to enter
Phase II Trials in Europe
Glenmark completed Phase I clinical trials for GRC 6211 in
Europe. GRC 6211 is its lead Vanniloid Receptor (VR1)
antagonist compound for a range of pain indications
like neuropathic pain, osteoarthritis and urinary incontinence.
Glenmark is now initiating a Phase IIA proof of concept study for
dental pain in Europe and plans to initiate a large Phase IIB study
immediately after that for neuropathic pain and osteoarthritis.
*Headlines as they appeared in the press releases by the company
Revenues 2006-07
Contribution - FY 2007
Business Segments
Business Segments
Formulations - India
Formulations - USA
Formulations - USA
Formulations - Latin America
Formulations - Semi-Regulated Markets
API
API
34%
NCE (Out-Licensing Revenues)
Glenmark Confirms ANDA Filing with a Paragraph IV

Certification for Zetia Tablets
The Company filed an ANDA with a paragraph IV certification
with respect to patents listed by Schering in the FDA Orange
Book seeking regulatory approval to market a generic version of
Ezetimibe (US annual sales ~ $1.5 Bn). In the event that
Glenmark successfully challenges Schering's patent, Glenmark
will be entitled to a 180 day exclusivity period.
Objectives 2007-08
The Company has set a consolidated target of Rs. 17308.89
Research and Development
For the US market

The portfolio of marketed products to include over 25 products
File 15-20 solid dose ANDAs with a mix of para III and para IV
Opportunities which would include XRs and dermatological
products
Conclude 2 licensing collaborations across its molecules

under the development program
APIs
(USD 419 Mn ) and a net profit target of Rs. 5163.75

(USD 125 Mn)
File 12-14 US DMFs

Successfully progress
Phase II clinical trials for GRC 8200 and GRC 3886
GRC 6211 into Phase II clinical trials
GRC 10693, GRC 4039 and GRC 10801 into Phase I
clinical trials
Business Segments
Formulations - USA
Evaluate in-licensing opportunities for NCEs/NBEs to

consolidate pipeline

API
52%
Formulations
11%
18%
11%
11%
15%
Glenmark Concludes Deal to Acquire Medicamenta a.s.,

a Pharmaceutical Marketing and Manufacturing
Company in the Czech Republic
Glenmark has concluded a deal to acquire a majority
shareholding (>90%) of the company Medicamenta a.s.
(Medicamenta), a marketing and manufacturing company in the
Glenmark Pharmaceuticals has posted consolidated revenues of

Rs. 12515.34 Mn (USD 283.54 Mn) for FY 2007 reflecting
a growth of 65% over the previous fiscal. The consolidated net
profit stands at Rs. 3100.60 Mn (USD 70.25 Mn), an increase of
252% over the previous fiscal. The strong growth over
the previous year is guided by exceptional performances by
all the businesses.
Czech Republic with sales and marketing operations in both

Czech Republic and Slovakia. This acquisition provides Glenmark
with a strategic entry point into two of the fastest growing and
attractive markets of Europe. Medicamenta has 60 employees
and brings along a basket of 29 solid dose and semisolid
products.
4%
8%
12%
2%
27%
Europe
Conclude 1-2 more acquisitions in the branded generic

markets of Europe
21%
16%
10%
14%
11%
Evaluate/conclude acquisition opportunities in high

impact SRM markets
10%
13%
Average conversion rate for projection of Rs. 41.31 / USD 1.00
Dyax Corp. and Glenmark enter into Funded Research

Agreement for Discovery of Therapeutic Antibodies
Dyax Corp. and Glenmark entered into a funded research
agreement for the discovery of therapeutic antibodies. Under the
terms of this agreement, Dyax will perform funded research to
identify therapeutic antibodies for three targets provided by the
Company. The agreement also provides the Company with
sublicenses to relevant third party antibody phage display
patents that may be used with Dyax's technology. The Company
anticipates three highly promising New Biological Entities
coming out of this collaboration.
Highlights 2006-07
Glenmark Purchases Rights to Two Therapeutic

Antibodies from Chromos*
Glenmark completed the purchase of two NBE's CHR-1103 and
CHR-1201 (both are humanized monoclonal therapeutic
antibodies) from Chromos Molecular Systems Inc. (Chromos) of
British Columbia, Canada. The Company purchased all rights to
the two products as well as rights to use Chromos' proprietary
ACE system technology for cell line development for use with
respect to CHR-1103 and CHR- 1201. CHR-1103 and CHR-1201
are part of a validated class of drugs known as SAMI's (Selective
Adhesion Molecule Inhibitors). CHR-1103 is a broad
anti-inflammatory agent with a novel mechanism of action, being
developed initially to treat acute multiple sclerosis, for which
there is no treatment approved at present. CHR-1201 is an antithrombolytic humanized monoclonal antibody, which Glenmark
plans to develop initially to treat acute stroke.
Merck KGaA and Glenmark Pharmaceuticals Announce

Collaboration Agreement on DPPIV Inhibitor for Type 2
Diabetes
Glenmark concluded an agreement for GRC 8200 (DPP-IV
inhibitor for type II diabetes) with Merck KGaA, Germany where
Merck will develop and commercialize GRC 8200 for markets in
North America, Europe and Japan. The Company will retain
exclusive rights for the Indian market and will co-commercialize
in the rest of the countries. The total deal size is close to
USD 240 Mn and the Company received the first payment of
USD 31 Mn in FY 2007.
Glenmark's Lead Candidate for Pain, GRC 6211, to enter
Phase II Trials in Europe
Glenmark completed Phase I clinical trials for GRC 6211 in
Europe. GRC 6211 is its lead Vanniloid Receptor (VR1)
antagonist compound for a range of pain indications
like neuropathic pain, osteoarthritis and urinary incontinence.
Glenmark is now initiating a Phase IIA proof of concept study for
dental pain in Europe and plans to initiate a large Phase IIB study
immediately after that for neuropathic pain and osteoarthritis.
*Headlines as they appeared in the press releases by the company
Revenues 2006-07
Business Segments
Business Segments
Formulations - USA
Formulations - USA
API
API
34%
Glenmark Confirms ANDA Filing with a Paragraph IV

Certification for Zetia Tablets
The Company filed an ANDA with a paragraph IV certification
with respect to patents listed by Schering in the FDA Orange
Book seeking regulatory approval to market a generic version of
Ezetimibe (US annual sales ~ $1.5 Bn). In the event that
Glenmark successfully challenges Schering's patent, Glenmark
will be entitled to a 180 day exclusivity period.
Objectives 2007-08
For the US market

The portfolio of marketed products to include over 25 products
File 15-20 solid dose ANDAs with a mix of para III and para IV
Opportunities which would include XRs and dermatological
products
Conclude 2 licensing collaborations across its molecules

under the development program
APIs
The Company has set a consolidated target of Rs. 17308.89 Mn

1
(USD 419 Mn ) and a net profit target of Rs. 5163.75 Mn (USD

125 Mn)
File 12-14 US DMFs

Successfully progress
Phase II clinical trials for GRC 8200 and GRC 3886
GRC 6211 into Phase II clinical trials
GRC 10693, GRC 4039 and GRC 10801 into Phase I
clinical trials
Business Segments
Formulations - USA
Evaluate in-licensing opportunities for NCEs/NBEs to

consolidate pipeline

API
52%
Formulations
11%
18%
11%
11%
15%
Glenmark Concludes Deal to Acquire Medicamenta a.s.,

a Pharmaceutical Marketing and Manufacturing
Company in the Czech Republic
Glenmark has concluded a deal to acquire a majority
shareholding (>90%) of the company Medicamenta a.s.
(Medicamenta), a marketing and manufacturing company in the
Glenmark Pharmaceuticals has posted consolidated revenues of

Rs. 12515.34 Mn (USD 283.54 Mn) for FY 2007 reflecting
a growth of 65% over the previous fiscal. The consolidated net
profit stands at Rs. 3100.60 Mn (USD 70.25 Mn), an increase of
252% over the previous fiscal. The strong growth over
the previous year is guided by exceptional performances by
all the businesses.
Czech Republic with sales and marketing operations in both

Czech Republic and Slovakia. This acquisition provides Glenmark
with a strategic entry point into two of the fastest growing and
attractive markets of Europe. Medicamenta has 60 employees
and brings along a basket of 29 solid dose and semisolid
products.
4%
8%
12%
2%
27%
Europe
Conclude 1-2 more acquisitions in the branded generic

markets of Europe
21%
16%
10%
14%
11%
Evaluate/conclude acquisition opportunities in high

impact SRM markets
10%
13%
Average conversion rate for projection of Rs. 41.31 / USD 1.00
by the Company in Europe. The two acquired companies in Brazil

and Argentina are now well-integrated with the parent Company
and performed at par with expectations with the launch of several
new products. The Argentinean arm will act as a hub for
registering and launching the oncology portfolio in other ROW
countries including LatAm. In the semi-regulated markets the
Company has shown steady growth and has built a solid
foundation for the years to come. This has been achieved through
consolidation of field force, launching of various new products and
building up infrastructure in terms of marketing sales force.
Interview with MD and CEO
Even in this challenging scenario of increasing pricing pressures,

the API business did well with significant growth coming in the
fourth quarter of the year.
Glenn Saldanha
Managing Director and CEO
What is the long term strategy for Glenmark?

The Company's long term growth engine is innovation. By 2015,
Glenmark aims to be a global specialty company with the launch
of at least 2 proprietary molecules through a product pipeline
developed by own research and in-licensing/buyouts of NCEs
(Novel Chemical Entities) and/or NBEs (Novel Biological Entities).
The long term plan is to establish specialty front ends in the US,
key European and ROW (Rest-of-the-World) markets for selling of
these specialty products worldwide once approved. A complete
change in the revenue mix is anticipated as the specialty
business will occupy a majority of the Glenmark's revenues by
then with the generics and API businesses providing the balance.
In the medium term, the Company will continue to out-license
molecules for US, Europe and Japan at an early stage of clinical
research and ensure co-promotion rights in the US and select
European markets with a goal of commercializing products on its
own in the rest of the world. Glenmark's research pipeline looks
robust and the aim is to take 1-2 NCE/NBE into clinics every year
going forward. The Company's current focus is in the areas of
metabolic disorders, inflammation and oncology which are
categories of large unmet need globally. To meet this target,
Glenmark plans to bolster the product pipeline through its own
development program and also look at in-licensing opportunities
in the NCE and NBE space. In order to further establish itself as a
research based Company, Glenmark plans to build skills to
further undertake clinical development of molecules.
Inline with the long term strategy of establishing front ends, the
Company will either build or acquire brand marketing
infrastructure in ROW and select European markets.
Considerable efforts are underway in order to establish the
'Glenmark' brand globally.
What do you think about the Company's performance in
the past year, FY 2006-2007?
The year 2006-2007 was a year of good performances by all
businesses and the Company saw strong revenue and earnings
growth, inline with the guidance provided at the beginning of the
fiscal year. Despite a single digit annual growth in revenues in the
India formulations business, the overall formulation business
registered a growth of over 55%. Similarly the API businesses
grew in consolidated revenues by 34%.
The receipt of the
first payment for GRC 8200 from Merck also contributed
significantly to the consolidated performance.
The Company expanded operations to include more countries and

now markets formulations and APIs in over 85 countries including
the US and Europe.
Where do you see the business mix going forward as
Glenmark transforms into a specialty Company?
A few years ago, the Company was recognized as an India-centric
formulations Company with a portfolio comprising mainly of
dermatology products. Glenmark is now a global Company with
sales in more than 85 regulated and semi-regulated markets and a
wider portfolio comprising of over 10 therapeutic categories in the
generics and branded generics segments. The share of the
domestic business is reducing and is now one third of the total
business although the domestic business continues to grow in
terms of value. The revenues are now generated from markets
across the globe and markets with high growth potentials are
gaining share in the revenue mix. The NCE milestone receipts also
contribute a significant chunk of the revenues.
In the next 3-5 years, the revenues would be spread across
geographies with significant revenues coming from the research
business. The Company will experience significant growth from all
businesses especially in the US, Europe and Latin American

markets.
In the next 6-8 years, as Glenmark starts selling proprietary
drugs, the business mix would tilt towards the research business
which is expected to contribute majority of the revenues (5070%) whereas the formulations and the API businesses would
provide the balance.
How will various partnerships help the Company in
achieving its long term goal?
FY 2007 was a year of partnerships for Glenmark with several
deals getting concluded in this year. Partnerships struck over the
years extend across various geographies, business units and
therapeutic categories. The Company derived several
advantages from these partnerships in the short term which will
truly pave the way for Glenmark in becoming a specialty
Company in the long term.
With the out-licensing deals the Company monetized the NCE
assets and also hopes for a quicker launch of these molecules
worldwide. This has helped in de-risking the basic research
program. The deal with Dyax for biologics research is a deal
expected to expedite Glenmark's entry into biologics space.
Glenmark enjoyed success with various other partnerships in the
generics space and derived several advantages from these
partnerships. In the short term, partnerships have helped in
ensuring a quicker entry to the markets, building up of a product
portfolio and entering into niche categories.
The overall impact of these partnerships will help
in strengthening of the 'Glenmark' brand in these geographies.
This will also help in expediting the research program to ensure
launch of proprietary molecules which is inline with the
Company's long term strategy. Glenmark will continue to look
for partnership opportunities in the near future.
With GRC 6211 entering Phase II clinical trials, the Company

now has three compounds in Phase II clinical trials with five
additional leads in the preclinical phase. The acquisition of two
NBEs from Chromos and the research deal with Dyax will go a
long way in strengthening the research pipeline.
The US business was a good performer for the year and grew by
286% on account of several new product launches. The deal to
acquire the Czech company, Medicamenta marks the first entry
by the Company in Europe. The two acquired companies in Brazil

and Argentina are now well-integrated with the parent Company
and performed at par with expectations with the launch of several
new products. The Argentinean arm will act as a hub for
registering and launching the oncology portfolio in other ROW
countries including LatAm. In the semi-regulated markets the
Company has shown steady growth and has built a solid
foundation for the years to come. This has been achieved through
consolidation of field force, launching of various new products and
building up infrastructure in terms of marketing sales force.
Interview with MD and CEO
Even in this challenging scenario of increasing pricing pressures,

the API business did well with significant growth coming in the
fourth quarter of the year.
Glenn Saldanha
Managing Director and CEO
What is the long term strategy for Glenmark?

The Company's long term growth engine is innovation. By 2015,
Glenmark aims to be a global specialty company with the launch
of at least 2 proprietary molecules through a product pipeline
developed by own research and in-licensing/buyouts of NCEs
(Novel Chemical Entities) and/or NBEs (Novel Biological Entities).
The long term plan is to establish specialty front ends in the US,
key European and ROW (Rest-of-the-World) markets for selling of
these specialty products worldwide once approved. A complete
change in the revenue mix is anticipated as the specialty
business will occupy a majority of the Glenmark's revenues by
then with the generics and API businesses providing the balance.
In the medium term, the Company will continue to out-license
molecules for US, Europe and Japan at an early stage of clinical
research and ensure co-promotion rights in the US and select
European markets with a goal of commercializing products on its
own in the rest of the world. Glenmark's research pipeline looks
robust and the aim is to take 1-2 NCE/NBE into clinics every year
going forward. The Company's current focus is in the areas of
metabolic disorders, inflammation and oncology which are
categories of large unmet need globally. To meet this target,
Glenmark plans to bolster the product pipeline through its own
development program and also look at in-licensing opportunities
in the NCE and NBE space. In order to further establish itself as a
research based Company, Glenmark plans to build skills to
further undertake clinical development of molecules.
Inline with the long term strategy of establishing front ends, the
Company will either build or acquire brand marketing
infrastructure in ROW and select European markets.
Considerable efforts are underway in order to establish the
'Glenmark' brand globally.
What do you think about the Company's performance in
the past year, FY 2006-2007?
The year 2006-2007 was a year of good performances by all
businesses and the Company saw strong revenue and earnings
growth, inline with the guidance provided at the beginning of the
fiscal year. Despite a single digit annual growth in revenues in the
India formulations business, the overall formulation business
registered a growth of over 55%. Similarly the API businesses
grew in consolidated revenues by 34%.
The receipt of the
first payment for GRC 8200 from Merck also contributed
significantly to the consolidated performance.
The Company expanded operations to include more countries and

now markets formulations and APIs in over 85 countries including
the US and Europe.
Where do you see the business mix going forward as
Glenmark transforms into a specialty Company?
A few years ago, the Company was recognized as an India-centric
formulations Company with a portfolio comprising mainly of
dermatology products. Glenmark is now a global Company with
sales in more than 85 regulated and semi-regulated markets and a
wider portfolio comprising of over 10 therapeutic categories in the
generics and branded generics segments. The share of the
domestic business is reducing and is now one third of the total
business although the domestic business continues to grow in
terms of value. The revenues are now generated from markets
across the globe and markets with high growth potentials are
gaining share in the revenue mix. The NCE milestone receipts also
contribute a significant chunk of the revenues.
In the next 3-5 years, the revenues would be spread across
geographies with significant revenues coming from the research
business. The Company will experience significant growth from all
businesses especially in the US, Europe and Latin American

markets.
In the next 6-8 years, as Glenmark starts selling proprietary
drugs, the business mix would tilt towards the research business
which is expected to contribute majority of the revenues (5070%) whereas the formulations and the API businesses would
provide the balance.
How will various partnerships help the Company in
achieving its long term goal?
FY 2007 was a year of partnerships for Glenmark with several
deals getting concluded in this year. Partnerships struck over the
years extend across various geographies, business units and
therapeutic categories. The Company derived several
advantages from these partnerships in the short term which will
truly pave the way for Glenmark in becoming a specialty
Company in the long term.
With the out-licensing deals the Company monetized the NCE
assets and also hopes for a quicker launch of these molecules
worldwide. This has helped in de-risking the basic research
program. The deal with Dyax for biologics research is a deal
expected to expedite Glenmark's entry into biologics space.
Glenmark enjoyed success with various other partnerships in the
generics space and derived several advantages from these
partnerships. In the short term, partnerships have helped in
ensuring a quicker entry to the markets, building up of a product
portfolio and entering into niche categories.
The overall impact of these partnerships will help
in strengthening of the 'Glenmark' brand in these geographies.
This will also help in expediting the research program to ensure
launch of proprietary molecules which is inline with the
Company's long term strategy. Glenmark will continue to look
for partnership opportunities in the near future.
With GRC 6211 entering Phase II clinical trials, the Company

now has three compounds in Phase II clinical trials with five
additional leads in the preclinical phase. The acquisition of two
NBEs from Chromos and the research deal with Dyax will go a
long way in strengthening the research pipeline.
The US business was a good performer for the year and grew by
286% on account of several new product launches. The deal to
acquire the Czech company, Medicamenta marks the first entry
The Company can now boast of a stronger comprehensive

pipeline in the future with the NBE research program in place.
After the deal with Chromos, the Company targets its first lead
from biologics research to go out to the clinics in 2008.
Apart from churning out molecules through own research,

the Company is exploring opportunities to in-license/buyout
molecules (both NCE and NBE) to strengthen research pipeline.
In the post-GATT era, Glenmark will also evaluate in-licensing of
approved products specifically for ROW markets including India.
What are your plans for the European business?
Glenmark established its first commercial foothold in Europe by
concluding the deal to acquire Medicamenta, a Czech Republic
based company with a presence in the branded generic markets
of Czech Republic and Slovakia. Being a recent entrant,
establishing itself in the European market is the primary
objective with the long term objective to be able to sell its
proprietary drugs in Europe. To meet its objectives, the Company
will continue filing of dossiers in Europe. Glenmark will also look
for acquisition opportunities in select branded generic markets,
essentially the Central and Eastern Europe territory. Glenmark
aims to build presence in 8-10 countries in Europe primarily in the

branded generics markets in the next 4-6 years. Acquisitions are
aimed at building brand marketing infrastructure in these
markets enabling the launch and commercialization of its
proprietary drugs, when approved.
Business Divisional Analysis

The R&D spend of the major Indian companies has grown at a
CAGR of 38% during the period 2000-01 to 2005-06. Overall the
Indian pharma is spending 8% of their revenues on R&D up from
the earlier figure of 4% of revenues five years ago. These figures
are much lower than the global average of 15% to 20% of
revenues. A large share of this investment continues to be in
generic formulation development and API process research, but
the scenario is rapidly changing and investment is also being
deployed in cutting-edge New Drug Discovery Research (NDDR)
by several Indian companies. Although there is a lot to achieve in
research, this emerging pattern truly signifies the onset of the
IPR regime in India.
As part of developing niche generic products and partnering and

creating alliances with European companies, the Company
entered into a joint developing, filing and marketing deal for three
derma products with Merck Generics, Germany for the European
region. Such partnerships help the Company establish its
presence and hasten the process of entry into these markets and
the Company will continue to take this course.
What are the reasons attributed to the turnaround in
the API business?
Last year the API business had shown a decline in revenues but
this year it grew by 34% as compared to the previous year. The
capacity bottlenecks were addressed and even with an increase
in demand on the captive front, API business performed well. The
Company commenced commercial supplies to the US, introduced
new products, entered new territories and also filed 11 USDMFs
which all contributed to the turnaround this year.
Going forward, the API business aims to establish itself as a
preferred supplier of APIs for the regulated and the semiregulated markets. The API business in the regulated market is
expected to grow rapidly to contribute to a large share of the API
revenues. The Company targets to file 12-14 USDMFs in
FY 2008 and several DMFs in Europe, Canada and ROW markets.
What is Glenmark's licensing strategy for the future?

Glenmark's current licensing strategy focuses on out-licensing
of NCEs at an early stage of clinical development for the markets
of US, Europe and Japan. The Company has so far succeeded in
acquiring commercialization rights for the ROW markets for all
its licensed molecules. Going forward the out-licensing of
molecules will continue but the Company will ensure
co-promotion rights for the US and select European countries.
There are various reasons for the Indian companies to look

for opportunities in the NDDR space Introduction of product patents (The IPR regime) in India.
Drying research pipeline for the Big Pharma.
Recent success story of research-based Indian companies.
Increasing competition in the generic space.
Huge opportunities in therapeutic areas of large unmet needs.
Glenmark has been engaged in NDDR for the past seven years
and is focused in the areas of inflammation, metabolic disorders
and most recently oncology. It currently ranks amongst the
industry leaders in the area of NDDR in India. The Company has a
pipeline of 11 lead candidates of which three are into Phase II of
clinical trials. The Company's research focus has expanded to
include New Biological entities (NBEs) along with small
molecules also called New Chemical Entities (NCEs). Glenmark
has invested in a State-of-the-Art biopharmaceutical research
laboratory in Switzerland through its subsidiary; and over the
next three to four years, research in biopharmaceuticals will
start contributing to the research pipeline.
Glenmark's Research Vision

Original research plays a critical role in Glenmark's ongoing
initiatives to execute its vision of being a research-led Company.
Intellectual property (IP) generated through NCE and NBE
research has a dual role in Glenmark's research vision: to
generate licensing revenues for markets such as US, Europe and
Japan and in the longer term, to enable the Company to establish
its brand name worldwide and realize its vision of becoming a
truly global Company. The Company plans to establish a global
specialty business including specialty front ends for the US, key
European and ROW markets in order to enable itself to sell its
own proprietary molecules.
The pay-off in the licensing model is lower than a do-it-alone
strategy; but it is also faster with interim milestone and royalty
payments. Most importantly, it offers Glenmark the opportunity
to partner with a player with complementary skills in clinical
development and higher risk-appetites. Over a period of time,
such alliances will also help Glenmark build the skill sets needed
to conduct clinical trials on its own. Subsequently, the Company
plans to move up the value chain and conduct further clinical
development for its lead molecules.
Glenmark's R&D Highlights
Overall, Glenmark has 11 lead molecules at various stages of
development. Three of the leads are into Phase II whereas eight
other leads are into the preclinical and discovery stages in the
broad areas of inflammation, metabolic disorders and oncology.
NCE Research
In a very short span of time, Glenmark has built a NCE pipeline of
six lead candidates in the two broad areas of inflammation and
metabolic disorders. These areas were selected for their global
growth potential, capability for pioneering analogue research,
Innovation is an integral part of

Glenmarks growth story
The Company can now boast of a stronger comprehensive

pipeline in the future with the NBE research program in place.
After the deal with Chromos, the Company targets its first lead
from biologics research to go out to the clinics in 2008.
Apart from churning out molecules through own research,

the Company is exploring opportunities to in-license/buyout
molecules (both NCE and NBE) to strengthen research pipeline.
In the post-GATT era, Glenmark will also evaluate in-licensing of
approved products specifically for ROW markets including India.
What are your plans for the European business?
Glenmark established its first commercial foothold in Europe by
concluding the deal to acquire Medicamenta, a Czech Republic
based company with a presence in the branded generic markets
of Czech Republic and Slovakia. Being a recent entrant,
establishing itself in the European market is the primary
objective with the long term objective to be able to sell its
proprietary drugs in Europe. To meet its objectives, the Company
will continue filing of dossiers in Europe. Glenmark will also look
for acquisition opportunities in select branded generic markets,
essentially the Central and Eastern Europe territory. Glenmark
aims to build presence in 8-10 countries in Europe primarily in the

branded generics markets in the next 4-6 years. Acquisitions are
aimed at building brand marketing infrastructure in these
markets enabling the launch and commercialization of its
proprietary drugs, when approved.
Business Divisional Analysis

The R&D spend of the major Indian companies has grown at a
CAGR of 38% during the period 2000-01 to 2005-06. Overall the
Indian pharma is spending 8% of their revenues on R&D up from
the earlier figure of 4% of revenues five years ago. These figures
are much lower than the global average of 15% to 20% of
revenues. A large share of this investment continues to be in
generic formulation development and API process research, but
the scenario is rapidly changing and investment is also being
deployed in cutting-edge New Drug Discovery Research (NDDR)
by several Indian companies. Although there is a lot to achieve in
research, this emerging pattern truly signifies the onset of the
IPR regime in India.
As part of developing niche generic products and partnering and

creating alliances with European companies, the Company
entered into a joint developing, filing and marketing deal for three
derma products with Merck Generics, Germany for the European
region. Such partnerships help the Company establish its
presence and hasten the process of entry into these markets and
the Company will continue to take this course.
What are the reasons attributed to the turnaround in
the API business?
Last year the API business had shown a decline in revenues but
this year it grew by 34% as compared to the previous year. The
capacity bottlenecks were addressed and even with an increase
in demand on the captive front, API business performed well. The
Company commenced commercial supplies to the US, introduced
new products, entered new territories and also filed 11 USDMFs
which all contributed to the turnaround this year.
Going forward, the API business aims to establish itself as a
preferred supplier of APIs for the regulated and the semiregulated markets. The API business in the regulated market is
expected to grow rapidly to contribute to a large share of the API
revenues. The Company targets to file 12-14 USDMFs in
FY 2008 and several DMFs in Europe, Canada and ROW markets.
What is Glenmark's licensing strategy for the future?

Glenmark's current licensing strategy focuses on out-licensing
of NCEs at an early stage of clinical development for the markets
of US, Europe and Japan. The Company has so far succeeded in
acquiring commercialization rights for the ROW markets for all
its licensed molecules. Going forward the out-licensing of
molecules will continue but the Company will ensure
co-promotion rights for the US and select European countries.
There are various reasons for the Indian companies to look

for opportunities in the NDDR space Introduction of product patents (The IPR regime) in India.
Drying research pipeline for the Big Pharma.
Recent success story of research-based Indian companies.
Increasing competition in the generic space.
Huge opportunities in therapeutic areas of large unmet needs.
Glenmark has been engaged in NDDR for the past seven years
and is focused in the areas of inflammation, metabolic disorders
and most recently oncology. It currently ranks amongst the
industry leaders in the area of NDDR in India. The Company has a
pipeline of 11 lead candidates of which three are into Phase II of
clinical trials. The Company's research focus has expanded to
include New Biological entities (NBEs) along with small
molecules also called New Chemical Entities (NCEs). Glenmark
has invested in a State-of-the-Art biopharmaceutical research
laboratory in Switzerland through its subsidiary; and over the
next three to four years, research in biopharmaceuticals will
start contributing to the research pipeline.
Glenmark's Research Vision

Original research plays a critical role in Glenmark's ongoing
initiatives to execute its vision of being a research-led Company.
Intellectual property (IP) generated through NCE and NBE
research has a dual role in Glenmark's research vision: to
generate licensing revenues for markets such as US, Europe and
Japan and in the longer term, to enable the Company to establish
its brand name worldwide and realize its vision of becoming a
truly global Company. The Company plans to establish a global
specialty business including specialty front ends for the US, key
European and ROW markets in order to enable itself to sell its
own proprietary molecules.
The pay-off in the licensing model is lower than a do-it-alone
strategy; but it is also faster with interim milestone and royalty
payments. Most importantly, it offers Glenmark the opportunity
to partner with a player with complementary skills in clinical
development and higher risk-appetites. Over a period of time,
such alliances will also help Glenmark build the skill sets needed
to conduct clinical trials on its own. Subsequently, the Company
plans to move up the value chain and conduct further clinical
development for its lead molecules.
Glenmark's R&D Highlights
Overall, Glenmark has 11 lead molecules at various stages of
development. Three of the leads are into Phase II whereas eight
other leads are into the preclinical and discovery stages in the
broad areas of inflammation, metabolic disorders and oncology.
NCE Research
In a very short span of time, Glenmark has built a NCE pipeline of
six lead candidates in the two broad areas of inflammation and
metabolic disorders. These areas were selected for their global
growth potential, capability for pioneering analogue research,
Innovation is an integral part of

Glenmarks growth story
Glenmarks NCE Pipeline*

Compound
Target
Primary Indications
Status
Partners
Target Launch
GRC 3886
(Oglemilast)
PDE 4
Asthma, COPD
Ph II
Forest Labs for N. America.

Teijin Pharma for Japan.
2009/10
GRC 8200
DPP IV
Diabetes (Type II)
Ph II
Merck KGaA (Germany) for USA,

Europe and Japan. Shared
commercialization rights for all
other countries except India.
Glenmark enjoys exclusivity for India.
GRC 6211
VR 1
Osteoarthritis, Dental Pain,

Incontinence, Neuropathic Pain
Ph II
Discussions Ongoing
2010
DPP - IV
2011
DPP - IV
PDE 4
Rheumatoid Arthritis,
Inflammation, Multiple Sclerosis
Ph I to start
by Q3 FY 2008
2012
GRC 10693
CB 2
Neuropathic Pain, Osteoarthritis

and other Inflammatory Pain
Ph I to start
by Q3 FY 2008
2012
Obesity
Ph I to start
by Q4 FY 2008
2012
CB 1
Target
DPP - IV
GRC 4039
GRC 10801
Calendar of Events
VR1
VR1
Compound
Target
Primary Indications
Status
Partners
Target Launch
GBR 500
(Formerly
CHR-1103)
SAMI
Acute Multiple Sclerosis;

Inflammatory Disorders
Ph I to start
by Q1 FY 2009
2014
GBR 600
(Formerly
CHR-1201)
VWF
Acute Stroke / Coronary Syndrome; Ph I to start

Thrombosis Cardiovascular disorders by Q4 FY 2009
2015
As part of the deal with Dyax, three more molecules are at discovery stage and are currently under development with Dyax. The first molecule is expected to
enter the clinics during the calendar year 2009 and the other two molecules are expected to enter the clinics during the calendar year 2010.
* As of August 2007
inventory of research skills available in the Indian scientist pool

and licensing opportunities.
Glenmark's selected research areas are of interest to several
international majors because of their high revenue potential and
hence they present significant partnership prospects. This has
been evidenced by the deal concluded in this year with Merck
KGaA, Germany for Glenmark's GRC 8200 (DPP IV for Type-II
Diabetes). This is in addition to the deals concluded last year for
Glenmark's first compound Oglemilast with Forest Labs for
North America and Teijin Pharma for Japan. The hallmark of
Glenmark's successful research story has been the out-licensing
deals and its strategy of out-licensing molecules at an early
stage of development which have clearly paid off. Glenmark's
strategy will continue for other compounds in development.
NBE Research
Glenmark wants to quickly establish itself as a serious player in
the biologics research space. After establishing the research
facility at Switzerland, the Company took its first significant
stride by entering into collaboration with Europe-based Dyax for

funded biologics research. Glenmark also completed the
purchase of two NBE's, CHR-1103 and CHR-1201 from
Chromos, Canada. Glenmark holds the worldwide rights for
further development, registration and commercialization of
these products. Glenmark plans to complete Phase 1 on CHR1103 by FY 2009 and on CHR-1201 by FY 2010. These
collaborations will help the company expedite its foray into the
highly lucrative biologics space. The Company has five lead
molecules in the areas of inflammation and oncology.
Risk Management in Research
Glenmark adopts an approach called 'analogue research', which
entails working on certain pre-identified targets that are
currently being worked on by Big Pharma for specific diseases
and developing a robust patent estate. While analogue NCE
research is also time consuming and expensive, it enjoys a lower
risk profile compared with basic research that commences with
target identification.
CB1
Glenmarks NBE Pipeline*
CB1
CB2
CB1/CB2
Events in 2006-07
Presentation
ADA 66th Scientific Sessions

Washington, USA
June 2006
Poster
42nd Annual Meeting of the EASD

Sweden
September 2006
Poster
American Diabetes Association

Washington DC
June 2006
Poster
Ion Channel Targets,

Boston, USA
September 2006
Poster
SMI Conference on Pain Therapeutics

London, UK
June 2006
Poster
International Congress on Obesity,

Sydney, Australia
September 2006
Poster
IBC Conference on Metabolic Syndrome

Boston, USA
April 2006
Poster
Society for Neuroscience Annual Meeting

Atlanta, USA
October 2006
Poster
SBS Conference on Advancing Drug Discovery

Washington, USA
September 2006
Oral
Glenmarks NCE Pipeline*

Compound
Target
Primary Indications
Status
Partners
Target Launch
GRC 3886
(Oglemilast)
PDE 4
Asthma, COPD
Ph II
Forest Labs for N. America.

Teijin Pharma for Japan.
2009/10
GRC 8200
DPP IV
Diabetes (Type II)
Ph II
Merck KGaA (Germany) for USA,

Europe and Japan. Shared
commercialization rights for all
other countries except India.
Glenmark enjoys exclusivity for India.
GRC 6211
VR 1
Osteoarthritis, Dental Pain,

Incontinence, Neuropathic Pain
Ph II
Discussions Ongoing
2010
DPP - IV
2011
DPP - IV
PDE 4
Rheumatoid Arthritis,
Inflammation, Multiple Sclerosis
Ph I to start
by Q3 FY 2008
2012
GRC 10693
CB 2
Neuropathic Pain, Osteoarthritis

and other Inflammatory Pain
Ph I to start
by Q3 FY 2008
2012
Obesity
Ph I to start
by Q4 FY 2008
2012
CB 1
Target
DPP - IV
GRC 4039
GRC 10801
Calendar of Events
VR1
VR1
Compound
Target
Primary Indications
Status
Partners
Target Launch
GBR 500
(Formerly
CHR-1103)
SAMI
Acute Multiple Sclerosis;

Inflammatory Disorders
Ph I to start
by Q1 FY 2009
2014
GBR 600
(Formerly
CHR-1201)
VWF
Acute Stroke / Coronary Syndrome; Ph I to start

Thrombosis Cardiovascular disorders by Q4 FY 2009
2015
As part of the deal with Dyax, three more molecules are at discovery stage and are currently under development with Dyax. The first molecule is expected to
enter the clinics during the calendar year 2009 and the other two molecules are expected to enter the clinics during the calendar year 2010.
* As of August 2007
inventory of research skills available in the Indian scientist pool

and licensing opportunities.
Glenmark's selected research areas are of interest to several
international majors because of their high revenue potential and
hence they present significant partnership prospects. This has
been evidenced by the deal concluded in this year with Merck
KGaA, Germany for Glenmark's GRC 8200 (DPP IV for Type-II
Diabetes). This is in addition to the deals concluded last year for
Glenmark's first compound Oglemilast with Forest Labs for
North America and Teijin Pharma for Japan. The hallmark of
Glenmark's successful research story has been the out-licensing
deals and its strategy of out-licensing molecules at an early
stage of development which have clearly paid off. Glenmark's
strategy will continue for other compounds in development.
NBE Research
Glenmark wants to quickly establish itself as a serious player in
the biologics research space. After establishing the research
facility at Switzerland, the Company took its first significant
stride by entering into collaboration with Europe-based Dyax for

funded biologics research. Glenmark also completed the
purchase of two NBE's, CHR-1103 and CHR-1201 from
Chromos, Canada. Glenmark holds the worldwide rights for
further development, registration and commercialization of
these products. Glenmark plans to complete Phase 1 on CHR1103 by FY 2009 and on CHR-1201 by FY 2010. These
collaborations will help the company expedite its foray into the
highly lucrative biologics space. The Company has five lead
molecules in the areas of inflammation and oncology.
Risk Management in Research
Glenmark adopts an approach called 'analogue research', which
entails working on certain pre-identified targets that are
currently being worked on by Big Pharma for specific diseases
and developing a robust patent estate. While analogue NCE
research is also time consuming and expensive, it enjoys a lower
risk profile compared with basic research that commences with
target identification.
CB1
Glenmarks NBE Pipeline*
CB1
CB2
CB1/CB2
Events in 2006-07
Presentation
ADA 66th Scientific Sessions

Washington, USA
June 2006
Poster
42nd Annual Meeting of the EASD

Sweden
September 2006
Poster
American Diabetes Association

Washington DC
June 2006
Poster
Ion Channel Targets,

Boston, USA
September 2006
Poster
SMI Conference on Pain Therapeutics

London, UK
June 2006
Poster
International Congress on Obesity,

Sydney, Australia
September 2006
Poster
IBC Conference on Metabolic Syndrome

Boston, USA
April 2006
Poster
Society for Neuroscience Annual Meeting

Atlanta, USA
October 2006
Poster
SBS Conference on Advancing Drug Discovery

Washington, USA
September 2006
Oral
The scientists also represent Glenmark in various national and

international seminars and meetings to present the results of
their in-house research efforts (please refer to the table titled
'Calendar of Events' on page 9). Moreover, these results are also
published in peer-reviewed international journals on a continuous
basis.
Infrastructure and Skill Sets

The Glenmark research centers at Mahape, Navi Mumbai and
Sinnar, Nasik employ over 450 scientific staff engaged in drug
discovery, formulation development, process development and
analytical research. This team of talented and dedicated
scientists includes several PhDs and post-doctorates from
universities in the US and Europe.
Next Generation
Focus on strengthening research pipeline
During the last few years, Glenmark has built a very strong
pipeline of research molecules. It currently has a set of 11
molecules at various stages of development. With a target to
progress 1-2 molecules every year into the clinics the Company's
focus is to further strengthen its pipeline. This would be done
through two different ways
Continuing focus on in-house research for NCEs and NBEs.
In-licensing/buying out of research molecules at an early stage
of development.
Glenmark's Biologics Research Centre at Switzerland employs

over 25 scientists hired from Europe with adequate biologics
research experience. Biologics research is at a very nascent
stage in India. The research centre was established in
Switzerland owing to the advanced capabilities and
infrastructure available in Switzerland.
The individual research divisions are headed by people with rich
experience in their respective research areas. Glenmark has
made adequate investments in equipping its research teams with
requisite modern scientific equipment, which is at par with any
international research facility, to carry out drug discovery and
development as per national/international standards and
regulations.
generic and branded generic products in over 85 countries. With

the acquisition of Medicamenta, the Company now has two
formulation manufacturing units at foreign locations apart from
the facilities in India. Having received several approvals from the
international regulatory agencies, the manufacturing facilities
are capable of producing solid dose and semi-solid products
suitable for regulated and semi-regulated markets. Formulation
development centers at Sinnar and Navi Mumbai in India are all
geared up to meet the growing demands and cope up with the
expansion plans.
In addition, Glenmark has created a Scientific Advisory Board

(SAB) that helps it to identify new discovery targets. The SAB
also periodically conducts a critical review of the progress in
ongoing discovery projects along with advising on the targets
licensing potential. Glenmark's SAB members are scientists who
have decades of experience in their respective fields.
Focus on Biopharmaceuticals
Biopharmaceuticals have grown in importance in the last couple
of decades and are expected to dominate an increasing part of
global R&D investment over the next few years. Glenmark's
research centre for biologics in Switzerland will play a vital and
complementary role to Glenmark's research in India dedicated to
NCE research.
Formulations
Glenmark continues to spread its formulations business across
the regulated and semi-regulated markets while strengthening
its position in the domestic market. The Company markets
The formulations business posted consolidated revenues of

Rs. 9801.86 Mn (USD 222.06 Mn) in FY 2007. This year the
Company experienced all-round performance and realized solid
growth in the US, LatAm and the SRM (semi-regulated market)
regions.
In addition, despite having very promising lead compounds in

various areas, Glenmark continues to identify back-up molecules
through parallel research initiatives. This is a risk-mitigating
strategy and is important till such time the drug candidates
advance to late-clinical trials. Thus, in addition to the lead
compound in the focus therapy areas, Glenmark has developed a
back-up pre-clinical pipeline of several drug candidate molecules
for asthma/COPD, diabetes/obesity and other inflammatory
conditions. One of the initiatives is to increase focus on NBE
research apart from the focus on existing NCE research in order
to strengthen the pipeline. This internal research and
development would be supported by buyouts/in-licensing of
compounds in the areas of NCE and NBE research.
Performance Highlights
The revenues from the formulations business grew by 55% over
the previous year.
The Company launched 36 new generic drugs with six products
launched for the first time in India along with the introduction of
new molecules and combination products.
The US business showed a growth of 286% over the previous
year. The Company entered into partnerships with LVT, Aspen,
Invagen, Shasun and Paul Capital Partners for the US generics
markets.
The Company has launched 13 products in LatAm countries.
Servycal's basket of oncology products has been used to register
products in the LatAm and SRM regions. Servycal is now
authorized to market its products in more than 14 countries
worldwide.
The Company completed 311 filings and obtained 207
registrations for products across SRM. The Company
commenced business in nine new countries in the SRM region.
As part of its expansion plans in Europe, the Company concluded
a deal to acquire a Czech company named Medicamenta which
has operations in two of Europe's highly attractive markets of
the Czech Republic and Slovakia. This has given Glenmark its
first commercial foothold into the strategically important
markets of Europe.
Glenmark's new manufacturing facility at Baddi is fully
commissioned with more than Rs. 2300 Mn (>USD 52 Mn)
worth of production coming from the new facility during the
year.
Performance Details of Business Units

The formulation business in Glenmark is organized into five
independent business units based on geography, market
dynamics, intellectual property and regulatory differences.
India
The India formulations business posted net sales of Rs.
4289.72 Mn (USD 97.18 Mn) registering a growth of 9% over
FY 2006. Glenmark's presence spans across over ten
therapeutic categories with major share (> 60%) of revenues
provided by dermatology, respiratory and anti-infectives
segments.
Glenmark's steady growth is attributed to the sustained
introduction of new drugs, focus on power brands, entry into
new growth segments and the reorganization last year which
has now started to pay off.
Glenmark's strategy is to maximize revenues from formulations
by focusing on power brands. This is integral to the Company's
growth for a number of reasonsRobust brands enhance revenue predictability.
They enhance margins.
They create a consumer pull.
They strengthen the corporate reputation which translates
into the off-take of Company's other products.
Scientific Advisory Board
10
Name
Areas of Expertise
Prof. Jonathan Robert Sanders Arch
Diabetes and Obesity
Prof. Clive Page
Asthma and COPD
Dr. Per Sjberg
Toxicological Studies
Dr. Daniel Drucker
Diabetes
Dr. Arpad Szallasi
Vanilloid Receptor Agents
Dr. Gary Williams
Carcinogenic and Toxicological Studies
Glenmarks strong growth across geographies

will continue with a key objective of
establishing a global footprint
11
The scientists also represent Glenmark in various national and

international seminars and meetings to present the results of
their in-house research efforts (please refer to the table titled
'Calendar of Events' on page 9). Moreover, these results are also
published in peer-reviewed international journals on a continuous
basis.
Infrastructure and Skill Sets

The Glenmark research centers at Mahape, Navi Mumbai and
Sinnar, Nasik employ over 450 scientific staff engaged in drug
discovery, formulation development, process development and
analytical research. This team of talented and dedicated
scientists includes several PhDs and post-doctorates from
universities in the US and Europe.
Next Generation
Focus on strengthening research pipeline
During the last few years, Glenmark has built a very strong
pipeline of research molecules. It currently has a set of 11
molecules at various stages of development. With a target to
progress 1-2 molecules every year into the clinics the Company's
focus is to further strengthen its pipeline. This would be done
through two different ways
Continuing focus on in-house research for NCEs and NBEs.
In-licensing/buying out of research molecules at an early stage
of development.
Glenmark's Biologics Research Centre at Switzerland employs

over 25 scientists hired from Europe with adequate biologics
research experience. Biologics research is at a very nascent
stage in India. The research centre was established in
Switzerland owing to the advanced capabilities and
infrastructure available in Switzerland.
The individual research divisions are headed by people with rich
experience in their respective research areas. Glenmark has
made adequate investments in equipping its research teams with
requisite modern scientific equipment, which is at par with any
international research facility, to carry out drug discovery and
development as per national/international standards and
regulations.
generic and branded generic products in over 85 countries. With

the acquisition of Medicamenta, the Company now has two
formulation manufacturing units at foreign locations apart from
the facilities in India. Having received several approvals from the
international regulatory agencies, the manufacturing facilities
are capable of producing solid dose and semi-solid products
suitable for regulated and semi-regulated markets. Formulation
development centers at Sinnar and Navi Mumbai in India are all
geared up to meet the growing demands and cope up with the
expansion plans.
In addition, Glenmark has created a Scientific Advisory Board

(SAB) that helps it to identify new discovery targets. The SAB
also periodically conducts a critical review of the progress in
ongoing discovery projects along with advising on the targets
licensing potential. Glenmark's SAB members are scientists who
have decades of experience in their respective fields.
Focus on Biopharmaceuticals
Biopharmaceuticals have grown in importance in the last couple
of decades and are expected to dominate an increasing part of
global R&D investment over the next few years. Glenmark's
research centre for biologics in Switzerland will play a vital and
complementary role to Glenmark's research in India dedicated to
NCE research.
Formulations
Glenmark continues to spread its formulations business across
the regulated and semi-regulated markets while strengthening
its position in the domestic market. The Company markets
The formulations business posted consolidated revenues of

Rs. 9801.86 Mn (USD 222.06 Mn) in FY 2007. This year the
Company experienced all-round performance and realized solid
growth in the US, LatAm and the SRM (semi-regulated market)
regions.
In addition, despite having very promising lead compounds in

various areas, Glenmark continues to identify back-up molecules
through parallel research initiatives. This is a risk-mitigating
strategy and is important till such time the drug candidates
advance to late-clinical trials. Thus, in addition to the lead
compound in the focus therapy areas, Glenmark has developed a
back-up pre-clinical pipeline of several drug candidate molecules
for asthma/COPD, diabetes/obesity and other inflammatory
conditions. One of the initiatives is to increase focus on NBE
research apart from the focus on existing NCE research in order
to strengthen the pipeline. This internal research and
development would be supported by buyouts/in-licensing of
compounds in the areas of NCE and NBE research.
Performance Highlights
The revenues from the formulations business grew by 55% over
the previous year.
The Company launched 36 new generic drugs with six products
launched for the first time in India along with the introduction of
new molecules and combination products.
The US business showed a growth of 286% over the previous
year. The Company entered into partnerships with LVT, Aspen,
Invagen, Shasun and Paul Capital Partners for the US generics
markets.
The Company has launched 13 products in LatAm countries.
Servycal's basket of oncology products has been used to register
products in the LatAm and SRM regions. Servycal is now
authorized to market its products in more than 14 countries
worldwide.
The Company completed 311 filings and obtained 207
registrations for products across SRM. The Company
commenced business in nine new countries in the SRM region.
As part of its expansion plans in Europe, the Company concluded
a deal to acquire a Czech company named Medicamenta which
has operations in two of Europe's highly attractive markets of
the Czech Republic and Slovakia. This has given Glenmark its
first commercial foothold into the strategically important
markets of Europe.
Glenmark's new manufacturing facility at Baddi is fully
commissioned with more than Rs. 2300 Mn (>USD 52 Mn)
worth of production coming from the new facility during the
year.
Performance Details of Business Units

The formulation business in Glenmark is organized into five
independent business units based on geography, market
dynamics, intellectual property and regulatory differences.
India
The India formulations business posted net sales of Rs.
4289.72 Mn (USD 97.18 Mn) registering a growth of 9% over
FY 2006. Glenmark's presence spans across over ten
therapeutic categories with major share (> 60%) of revenues
provided by dermatology, respiratory and anti-infectives
segments.
Glenmark's steady growth is attributed to the sustained
introduction of new drugs, focus on power brands, entry into
new growth segments and the reorganization last year which
has now started to pay off.
Glenmark's strategy is to maximize revenues from formulations
by focusing on power brands. This is integral to the Company's
growth for a number of reasonsRobust brands enhance revenue predictability.
They enhance margins.
They create a consumer pull.
They strengthen the corporate reputation which translates
into the off-take of Company's other products.
Scientific Advisory Board
10
Name
Areas of Expertise
Prof. Jonathan Robert Sanders Arch
Diabetes and Obesity
Prof. Clive Page
Asthma and COPD
Dr. Per Sjberg
Toxicological Studies
Dr. Daniel Drucker
Diabetes
Dr. Arpad Szallasi
Vanilloid Receptor Agents
Dr. Gary Williams
Carcinogenic and Toxicological Studies
Glenmarks strong growth across geographies

will continue with a key objective of
establishing a global footprint
11
The Company has launched 80 new products in the last three

years and the new launches contributed to over 15% to total
revenues in the financial year under review. During FY 2007,
Glenmark introduced a number of new molecules and
combination products along with line extensions to its top selling
brands in order to complete its therapy basket. Glenmark has
launched 36 new products in FY 2007, out of which six products
were launched for the first time in India. The first time launches
include Sibet-P (Dexibuprofen + Paracetamol), Allesa (Benzoyl
Peroxide + Clindamycin), Telma AM (Telmisartan + Amlodipine)
and Revize (Idebenone). Another product launched for the first
time in India, Aprecap (Aprepitant), is a first-of-its-kind
commercially available drug from a new class of agents for the
treatment of chemotherapy-induced nausea and vomiting.
Similarly Halovate (Halobetasol), a new super potent topical
corticosteroid (both in ointment and cream forms) was launched
for the first time in India. These clearly showcase Glenmarks
ability as a research focused Company churning out molecules
well-ahead of competition and capturing the first-mover's
advantage.
Glenmark operates through seven retail divisions, one
institutional and one division targeting family physicians with a
total field force of over 2000 medical representatives. During
the last fiscal, the Company added a new division ONKOS to
focus on Oncology products. Reorganization into divisions has
helped Glenmark strengthen its focus on brand building, reinvent
therapeutic focus, specialty development and has improved
business orientation for the entire organization.
Going forward, the Company's focus is to build power brands,
launch differentiated products and strengthen presence in
respiratory, pain management and metabolic diseases
12
categories in preparation for its own product launches.

The Company is aggressively looking for in-licensing of novel
products to augment its pipeline.
Glenmark believes that US generic market is an attractive

opportunity and will continue to operate as a generic player with
a difference in this market. The Company has established a base
for generics business in the last three years and believes that it
can capitalize on this foundation to enjoy success in the coming
years. Some of the key success factors include a very good sales
and marketing front-end, strong generic and formulation
development capabilities with strong IP skills, timely
partnerships, creatively chosen product portfolio, excellent
trade relations with customers and well-integrated
manufacturing. These factors will drive Glenmark's success in
the highly competitive US market in the coming years.
North America/US Business (US)

Glenmark's US subsidiary, Glenmark pharmaceuticals Inc., USA
(GPI), was incorporated in 2003, launched its sales and
marketing front-end in FY 2005 and the business broke even in
the first two years of operations. GPI posted revenues of
Rs. 2207.52 Mn (USD 50.01 Mn) for the year and markets 19
generic products in the US market.
Through a multi-pronged approach of in-licensing, core product
development, and focus on niche categories, GPI has an exciting
mix of old and new products with Para II, III and some Para IV
filings through own and partner development. The Company
obtained approvals for marketing of Meloxicam and Gabapentin
tablets and filed over 10 ANDAs in FY 2007. Immediately after
the period under review, Glenmark received approvals for
marketing of Pravastatin Sodium, Naproxen, Naproxen Sodium,
Terbinafine HCl, Ondansetron HCl ODT and Ondansetron HCl.
In an effort to accelerate the growth of the US front-end and
quicken the entry to the market, GPI has sought and found
several opportunities to in-license and acquire products from
other manufacturers around the globe. While GPI continues to
develop and file its own ANDAs, it will also identify and assess
in-licensing opportunities for sales growth in short and medium
terms.
The Company has entered into several partnerships for
generic products Marketing of 20 oral solid products developed and manufactured
by Invagen and Shasun.
Marketing of controlled substances developed and
manufactured by Aspen, USA and Lehigh Valley Technologies
(LVT).
Development, manufacturing and marketing of 16 derma
products with Paul Capital Partners. Paul Capital Partners will
fund the development and receive royalties on sales with the
launch of the products.
Sustained focus on brands has ensured that two of its top

brands, Ascoril+ and Candid B continue to be on the list of top
300 products in the Indian market and are among the leaders in
their respective therapeutic categories. Several other brands like
Candid, Lizolid, Candibiotic, Telma and Candid-V occupy
leadership positions in their respective therapeutic categories.
Latin America (LatAm)

Glenmark operates in Latin America through its two subsidiaries
Glenmark Farmaceutica Ltda. located in Brazil and Servycal
located in Argentina and markets its products in over 10
countries of LatAm. The business posted revenues of
Rs. 1420.65 Mn (USD 32.19 Mn) as against Rs. 764.39 Mn
(USD 17.26 Mn) in FY 2006 registering a growth of 86%. The
growth was on account of new product launches in Brazil,
Argentina and other LatAm countries. The launches were
accompanied by new product registrations and expansion of
commercial operations into newer countries. The Company filed
for over 40 registrations and obtained 13 marketing approvals in
the LatAm region. In FY 2007, the Company also launched
products in the markets of Venezuela and Colombia for the first
time.
In Brazil, the Company filed a total of 24 dossiers and received
approvals for marketing 10 products. The Company launched its
first differentiated product Adacne Clin, a dermatology product
which is a combination of Adapalene and Clindamycin launched
for the first time by any company. The Company also increased
its sales force to improve its nationwide coverage in Brazil.
The Company's strategy will be to continue filing and launching
differentiated products and establish its presence as a specialty
segment player in Brazil.
In Argentina, the Company filed a total of three dossiers and
received approvals for three products in FY 2007. Servycal's
wide range of oncology spans across oral solids, liquid injections
and lyophilized injectable products. The Company's intent is to
use Servycal as a hub for spreading the oncology business to
other Latin American and key ROW markets. As part of the
strategy, in FY 2007, Servycal filed for registration and received
approvals in over 14 countries including Brazil, Venezuela,
Colombia etc. in the LatAm region and in countries like India,
Pakistan etc. in the ROW region. Sales for Servycal products also
commenced in a number of countries. The Company is also

awaiting approval for Servycal products in Russia, Philippines,
Egypt and other key SRM markets.
The LatAm business is focused on dermatology, respiratory,
gynaecology and oncology therapeutic segments. The Company
targets filing of over 50 dossiers and expects approval of over 30
products in LatAm.
Semi-Regulated Markets (SRM)
Glenmark's performance in the semi-regulated markets which is
through a differentiated branded generic model continues to be
remarkable. The revenues from the SRM business grew by 78%
from Rs. 1056.17 Mn (USD 23.85 Mn) in FY 2006 to Rs.
1883.97 Mn (USD 42.68 Mn). The revenue increase is fuelled by
growth in Russia and South Africa. These countries have
emerged as the two key markets that will drive the future growth
in SRM. The Company has so far filed over 700 dossiers for
marketing approvals and received over 500 approvals for its
products in the SRM markets. Business operations were initiated
in nine new countries increasing the reach in SRM markets to
over 60 countries in the regions of Asia, Africa and Russia/CIS.
The Company consolidated its position in existing markets by
increasing field force, launching new products and revamping the
product portfolio to meet local requirements.
Glenmark believes that a huge business opportunity for
marketing differentiated branded generics is waiting in the SRM
markets. An integrated and research focused player like
Glenmark can make significant strides in these markets.
Glenmark's long-term perspective when commencing operations
is to ensure establishing a strong Glenmark brand and significant
marketing presence in these markets enabling to launch its own
proprietary molecules once approved. The Company's focus is on
the top-15 SRM markets including Russia, South Africa,
Philippines, Malaysia, Nigeria, Sri Lanka etc. The Company will
continue to register products and also expects significant
revenues to come through inclusion of an oncology line provided
by Servycal in the coming years.
The Company expanded its reach to 40 cities in Russia by
expanding its field force strength. Glenmark currently markets a
portfolio of differentiated products in the cough and cold,
dermatology and GI segments. Further consolidation and
launching 8-10 products are some of the key objectives for the
Russian market in FY 2008. The Company intends to utilize the
India advantage to file products and expand business in the South
African market.
13
The Company has launched 80 new products in the last three

years and the new launches contributed to over 15% to total
revenues in the financial year under review. During FY 2007,
Glenmark introduced a number of new molecules and
combination products along with line extensions to its top selling
brands in order to complete its therapy basket. Glenmark has
launched 36 new products in FY 2007, out of which six products
were launched for the first time in India. The first time launches
include Sibet-P (Dexibuprofen + Paracetamol), Allesa (Benzoyl
Peroxide + Clindamycin), Telma AM (Telmisartan + Amlodipine)
and Revize (Idebenone). Another product launched for the first
time in India, Aprecap (Aprepitant), is a first-of-its-kind
commercially available drug from a new class of agents for the
treatment of chemotherapy-induced nausea and vomiting.
Similarly Halovate (Halobetasol), a new super potent topical
corticosteroid (both in ointment and cream forms) was launched
for the first time in India. These clearly showcase Glenmarks
ability as a research focused Company churning out molecules
well-ahead of competition and capturing the first-mover's
advantage.
Glenmark operates through seven retail divisions, one
institutional and one division targeting family physicians with a
total field force of over 2000 medical representatives. During
the last fiscal, the Company added a new division ONKOS to
focus on Oncology products. Reorganization into divisions has
helped Glenmark strengthen its focus on brand building, reinvent
therapeutic focus, specialty development and has improved
business orientation for the entire organization.
Going forward, the Company's focus is to build power brands,
launch differentiated products and strengthen presence in
respiratory, pain management and metabolic diseases
12
categories in preparation for its own product launches.

The Company is aggressively looking for in-licensing of novel
products to augment its pipeline.
Glenmark believes that US generic market is an attractive

opportunity and will continue to operate as a generic player with
a difference in this market. The Company has established a base
for generics business in the last three years and believes that it
can capitalize on this foundation to enjoy success in the coming
years. Some of the key success factors include a very good sales
and marketing front-end, strong generic and formulation
development capabilities with strong IP skills, timely
partnerships, creatively chosen product portfolio, excellent
trade relations with customers and well-integrated
manufacturing. These factors will drive Glenmark's success in
the highly competitive US market in the coming years.
North America/US Business (US)

Glenmark's US subsidiary, Glenmark pharmaceuticals Inc., USA
(GPI), was incorporated in 2003, launched its sales and
marketing front-end in FY 2005 and the business broke even in
the first two years of operations. GPI posted revenues of
Rs. 2207.52 Mn (USD 50.01 Mn) for the year and markets 19
generic products in the US market.
Through a multi-pronged approach of in-licensing, core product
development, and focus on niche categories, GPI has an exciting
mix of old and new products with Para II, III and some Para IV
filings through own and partner development. The Company
obtained approvals for marketing of Meloxicam and Gabapentin
tablets and filed over 10 ANDAs in FY 2007. Immediately after
the period under review, Glenmark received approvals for
marketing of Pravastatin Sodium, Naproxen, Naproxen Sodium,
Terbinafine HCl, Ondansetron HCl ODT and Ondansetron HCl.
In an effort to accelerate the growth of the US front-end and
quicken the entry to the market, GPI has sought and found
several opportunities to in-license and acquire products from
other manufacturers around the globe. While GPI continues to
develop and file its own ANDAs, it will also identify and assess
in-licensing opportunities for sales growth in short and medium
terms.
The Company has entered into several partnerships for
generic products Marketing of 20 oral solid products developed and manufactured
by Invagen and Shasun.
Marketing of controlled substances developed and
manufactured by Aspen, USA and Lehigh Valley Technologies
(LVT).
Development, manufacturing and marketing of 16 derma
products with Paul Capital Partners. Paul Capital Partners will
fund the development and receive royalties on sales with the
launch of the products.
Sustained focus on brands has ensured that two of its top

brands, Ascoril+ and Candid B continue to be on the list of top
300 products in the Indian market and are among the leaders in
their respective therapeutic categories. Several other brands like
Candid, Lizolid, Candibiotic, Telma and Candid-V occupy
leadership positions in their respective therapeutic categories.
Latin America (LatAm)

Glenmark operates in Latin America through its two subsidiaries
Glenmark Farmaceutica Ltda. located in Brazil and Servycal
located in Argentina and markets its products in over 10
countries of LatAm. The business posted revenues of
Rs. 1420.65 Mn (USD 32.19 Mn) as against Rs. 764.39 Mn
(USD 17.26 Mn) in FY 2006 registering a growth of 86%. The
growth was on account of new product launches in Brazil,
Argentina and other LatAm countries. The launches were
accompanied by new product registrations and expansion of
commercial operations into newer countries. The Company filed
for over 40 registrations and obtained 13 marketing approvals in
the LatAm region. In FY 2007, the Company also launched
products in the markets of Venezuela and Colombia for the first
time.
In Brazil, the Company filed a total of 24 dossiers and received
approvals for marketing 10 products. The Company launched its
first differentiated product Adacne Clin, a dermatology product
which is a combination of Adapalene and Clindamycin launched
for the first time by any company. The Company also increased
its sales force to improve its nationwide coverage in Brazil.
The Company's strategy will be to continue filing and launching
differentiated products and establish its presence as a specialty
segment player in Brazil.
In Argentina, the Company filed a total of three dossiers and
received approvals for three products in FY 2007. Servycal's
wide range of oncology spans across oral solids, liquid injections
and lyophilized injectable products. The Company's intent is to
use Servycal as a hub for spreading the oncology business to
other Latin American and key ROW markets. As part of the
strategy, in FY 2007, Servycal filed for registration and received
approvals in over 14 countries including Brazil, Venezuela,
Colombia etc. in the LatAm region and in countries like India,
Pakistan etc. in the ROW region. Sales for Servycal products also
commenced in a number of countries. The Company is also

awaiting approval for Servycal products in Russia, Philippines,
Egypt and other key SRM markets.
The LatAm business is focused on dermatology, respiratory,
gynaecology and oncology therapeutic segments. The Company
targets filing of over 50 dossiers and expects approval of over 30
products in LatAm.
Semi-Regulated Markets (SRM)
Glenmark's performance in the semi-regulated markets which is
through a differentiated branded generic model continues to be
remarkable. The revenues from the SRM business grew by 78%
from Rs. 1056.17 Mn (USD 23.85 Mn) in FY 2006 to Rs.
1883.97 Mn (USD 42.68 Mn). The revenue increase is fuelled by
growth in Russia and South Africa. These countries have
emerged as the two key markets that will drive the future growth
in SRM. The Company has so far filed over 700 dossiers for
marketing approvals and received over 500 approvals for its
products in the SRM markets. Business operations were initiated
in nine new countries increasing the reach in SRM markets to
over 60 countries in the regions of Asia, Africa and Russia/CIS.
The Company consolidated its position in existing markets by
increasing field force, launching new products and revamping the
product portfolio to meet local requirements.
Glenmark believes that a huge business opportunity for
marketing differentiated branded generics is waiting in the SRM
markets. An integrated and research focused player like
Glenmark can make significant strides in these markets.
Glenmark's long-term perspective when commencing operations
is to ensure establishing a strong Glenmark brand and significant
marketing presence in these markets enabling to launch its own
proprietary molecules once approved. The Company's focus is on
the top-15 SRM markets including Russia, South Africa,
Philippines, Malaysia, Nigeria, Sri Lanka etc. The Company will
continue to register products and also expects significant
revenues to come through inclusion of an oncology line provided
by Servycal in the coming years.
The Company expanded its reach to 40 cities in Russia by
expanding its field force strength. Glenmark currently markets a
portfolio of differentiated products in the cough and cold,
dermatology and GI segments. Further consolidation and
launching 8-10 products are some of the key objectives for the
Russian market in FY 2008. The Company intends to utilize the
India advantage to file products and expand business in the South
African market.
13
Europe
Glenmark's subsidiary, Glenmark Pharmaceuticals (Europe) Ltd.
was established in 2004 to spearhead Glenmark's entry into
Europe. As part of the strategy to enter Europe, Glenmark recently
established its first commercial foothold in Europe by concluding
a deal to acquire Medicamenta. Medicamenta is a company based
in the Czech Republic with a product portfolio of 29 products
and operates in the branded generic markets of Czech Republic
and Slovakia. The revenues for Medicamenta are expected to
double within two years. Glenmark also plans to make use of
Medicamenta's plant capacity to support its broader operations,
by providing additional manufacturing, packaging, quality release
and warehousing for its wider European business.
In the short term, the Company's focus in Europe is to develop and
market niche/branded generic products, and also partnering with
European companies operating in the same therapeutic fields. For
example, the Company entered into a joint development, filing and
marketing deal for three derma products with Merck Generics,
Germany, for the entire European region. In addition, the Company
will develop and market generic products on its own in markets of
strategic focus, and through licensing partners in other markets.
The Company has already filed three product dossiers for
obtaining marketing approval in Europe and plans to file another 56 in-house developed products in FY 2008 to build up its portfolio.
The Company aims to acquire or in-license brands to support its
affiliates in Europe.
The deal to acquire Medicamenta is the first of many steps that
Glenmark will take on its journey to build a significant branded
presence in the European region. The Company's long-term
strategy is to emerge as a specialty/brand company marketing
novel drugs, by acquiring front-ends in key branded generics
markets. By 2012, the Company aims to build its presence in 8-10
countries, primarily branded generic markets in the CEE territory
which will enable Glenmark to sell its own proprietary drugs on
approval.
Active Pharmaceutical Ingredients (API)

14
After a decline in revenues last year on account of capacity

shortfalls, high captive consumption of API and decline in prices of
key APIs, the API business has registered a growth of 34% in

revenues. The business posted revenues of Rs. 1318.36 Mn (USD
29.87 Mn) as against revenues of Rs. 980.99 Mn (USD 22.15 Mn)
in the previous years. Capacity de-bottlenecking at Ankleshwar,
introduction of new products and sales in new regions were the
drivers for the growth.
Global Management Team
The Company commenced sales in the North African and the

Russia/CIS regions and introduced Rosuvastatin, Ezetimibe,
Aprepitant and Eplerenone in their product basket. The Company
filed 11 US DMFs, eight European DMFs, five CEPs (Certificate of
European Pharmacopoeia) and three Canadian DMFs in FY 2007
and also commenced commercial supplies of DMF products,
several samples, validation, pivotal batches to global generic
players for their ANDA/dossier filings. The Company has filed
close to 100 process patents in the last three years including the
38 process patents filed during the last year.
Capacity issues with the API plant at Ankleshwar were addressed
and further expansion has been made in manufacturing
infrastructure to cater to the increased demand. MHRA, the UK
Agency inspected and approved the Ankleshwar plant in FY 2007.
The Company targets to file 12-14 USDMFs in FY 2008 and
several DMFs in Europe, Canada and ROW markets.
Strategy for Growth
Glenmark plans to strengthen its API business further in the
coming years, byPartnering with generic companies to capture first and second
source opportunities and consequently, increasing share of sales
in the regulated markets.
Deriving cost advantage through backward integration in its own
generic formulations.
Developing low cost processes to provide fillip to its in-house NCE
program.
The Company is also evaluating acquisition candidates as well as

in-licensing opportunities in high-potential SRM markets which
would further help in expansion of the business. Over the next
few years the Company has ambitious plans for the SRM
markets.
Name
Responsibility
Mr. Glenn Saldanha
Managing Director & CEO
Mr. A. S. Mohanty
Director - Formulations
Mr. Rajesh Desai
Director - Finance/Legal
Ms. Cheryl Pinto
Director - Corporate Affairs
Dr. Swaroop Kumar V. V. S.
President - Drug Discovery & Clinical Development
Dr. Michael Buschle
President - Biologics
Mr. Terrance Coughlin
President - US Operations & Head - API Marketing
Mr. Guy Clark
President - EU Business
Mr. B. M. Sundaram
Sr. Vice President - Latin America
Mr. K. Anand
President - Quality Assurance & Regulatory Affairs
Mr. B. Vasudevan
President - Operations
Mr. Alind Sharma
Sr. Vice President - Human Resources
Mr. T. R. Grover
Sr. Vice President - Corporate Relations
Dr. Vijay Soni
Executive Vice President - Intellectual Property
Outlook
Glenmark has aggressive targets in its sightsStrengthen positioning as the preferred third party supplier to the
global generic industry; escalate supplies to regulated markets.
Develop several APIs every year which would complement the
Company's US and EU generic filings by providing cost and time
benefits.
Drive cost-efficiencies and productivity improvements to battle
margin pressures.
15
Europe
Glenmark's subsidiary, Glenmark Pharmaceuticals (Europe) Ltd.
was established in 2004 to spearhead Glenmark's entry into
Europe. As part of the strategy to enter Europe, Glenmark recently
established its first commercial foothold in Europe by concluding
a deal to acquire Medicamenta. Medicamenta is a company based
in the Czech Republic with a product portfolio of 29 products
and operates in the branded generic markets of Czech Republic
and Slovakia. The revenues for Medicamenta are expected to
double within two years. Glenmark also plans to make use of
Medicamenta's plant capacity to support its broader operations,
by providing additional manufacturing, packaging, quality release
and warehousing for its wider European business.
In the short term, the Company's focus in Europe is to develop and
market niche/branded generic products, and also partnering with
European companies operating in the same therapeutic fields. For
example, the Company entered into a joint development, filing and
marketing deal for three derma products with Merck Generics,
Germany, for the entire European region. In addition, the Company
will develop and market generic products on its own in markets of
strategic focus, and through licensing partners in other markets.
The Company has already filed three product dossiers for
obtaining marketing approval in Europe and plans to file another 56 in-house developed products in FY 2008 to build up its portfolio.
The Company aims to acquire or in-license brands to support its
affiliates in Europe.
The deal to acquire Medicamenta is the first of many steps that
Glenmark will take on its journey to build a significant branded
presence in the European region. The Company's long-term
strategy is to emerge as a specialty/brand company marketing
novel drugs, by acquiring front-ends in key branded generics
markets. By 2012, the Company aims to build its presence in 8-10
countries, primarily branded generic markets in the CEE territory
which will enable Glenmark to sell its own proprietary drugs on
approval.
Active Pharmaceutical Ingredients (API)

14
After a decline in revenues last year on account of capacity

shortfalls, high captive consumption of API and decline in prices of
key APIs, the API business has registered a growth of 34% in

revenues. The business posted revenues of Rs. 1318.36 Mn (USD
29.87 Mn) as against revenues of Rs. 980.99 Mn (USD 22.15 Mn)
in the previous years. Capacity de-bottlenecking at Ankleshwar,
introduction of new products and sales in new regions were the
drivers for the growth.
Global Management Team
The Company commenced sales in the North African and the

Russia/CIS regions and introduced Rosuvastatin, Ezetimibe,
Aprepitant and Eplerenone in their product basket. The Company
filed 11 US DMFs, eight European DMFs, five CEPs (Certificate of
European Pharmacopoeia) and three Canadian DMFs in FY 2007
and also commenced commercial supplies of DMF products,
several samples, validation, pivotal batches to global generic
players for their ANDA/dossier filings. The Company has filed
close to 100 process patents in the last three years including the
38 process patents filed during the last year.
Capacity issues with the API plant at Ankleshwar were addressed
and further expansion has been made in manufacturing
infrastructure to cater to the increased demand. MHRA, the UK
Agency inspected and approved the Ankleshwar plant in FY 2007.
The Company targets to file 12-14 USDMFs in FY 2008 and
several DMFs in Europe, Canada and ROW markets.
Strategy for Growth
Glenmark plans to strengthen its API business further in the
coming years, byPartnering with generic companies to capture first and second
source opportunities and consequently, increasing share of sales
in the regulated markets.
Deriving cost advantage through backward integration in its own
generic formulations.
Developing low cost processes to provide fillip to its in-house NCE
program.
The Company is also evaluating acquisition candidates as well as

in-licensing opportunities in high-potential SRM markets which
would further help in expansion of the business. Over the next
few years the Company has ambitious plans for the SRM
markets.
Name
Responsibility
Mr. Glenn Saldanha
Mr. A. S. Mohanty
Director - Formulations
Mr. Rajesh Desai
Director - Finance/Legal
Ms. Cheryl Pinto
Director - Corporate Affairs
Dr. Swaroop Kumar V. V. S.
President - Drug Discovery & Clinical Development
Dr. Michael Buschle
President - Biologics
Mr. Terrance Coughlin
President - US Operations & Head - API Marketing
Mr. Guy Clark
President - EU Business
Mr. B. M. Sundaram
Sr. Vice President - Latin America
Mr. K. Anand
President - Quality Assurance & Regulatory Affairs
Mr. B. Vasudevan
President - Operations
Mr. Alind Sharma
Sr. Vice President - Human Resources
Mr. T. R. Grover
Sr. Vice President - Corporate Relations
Dr. Vijay Soni
Executive Vice President - Intellectual Property
Outlook
Glenmark has aggressive targets in its sightsStrengthen positioning as the preferred third party supplier to the
global generic industry; escalate supplies to regulated markets.
Develop several APIs every year which would complement the
Company's US and EU generic filings by providing cost and time
benefits.
Drive cost-efficiencies and productivity improvements to battle
margin pressures.
15
stockists, 250,000 pharmacies, 15,000 hospitals and 500,000

doctors.
Coping with high price-sensitivity with the government playing a
role of moderator.
Performing within an 'underdeveloped' insurance scenario,
resulting with high self-pocket expense for healthcare,
complicated with high population polarization.
Limited access to healthcare owing to the poor infrastructural
developments.
Management Discussion and Analysis
The global pharmaceutical market is forecasted to grow to USD

842 billion in 2010, an equivalent CAGR of 7% over the next five
years. The trend in the growth of the global pharmaceutical
industry is shifting from mature markets to emerging ones.
Although USA, Europe and Japan markets contribute a major
chunk of the world market, the growth is expected to come from
the countries with low per capita GDP, where the availability of
healthcare is expanding and there is an increasing need for
treatments associated with chronic diseases.
World Pharmaceutical Market - Key Trends
Declining R&D productivity, the threat of patent expiry on key
products, and the resultant need to refurbish product portfolios
with new products have led to increased in-licensing of
molecules by the global majors.
The twin-engine of innovation and technology is propelling
marketing of pharma products. Specialty and niche products are
playing a larger role and the generic players are looking forward
to new formulations and new drug delivery systems for growth.
Consolidation has emerged as a promising path to growth for
generic players as it provides them with stronger product
portfolios, quicker market access and overall better
manufacturing efficiencies.
The populations are aging in the major markets of United States,
Japan and Europe and this increases demand and utilization for
the less expensive pharmaceuticals, i.e., generics.
All these factors and the emergence of India as a low-cost, highquality option for outsourcing of research, manufacturing and
other services offer a great opportunity for the Indian
pharmaceutical industry and Indian pharma companies. The
country is on its way to become the preferred global supplier for
bulk drugs and dosage forms, and a hub for contract research
and manufacturing (CRAM), contract research organizations
(CRO) and R&D activities. With its enormous advantages,
including a large, well-educated, skilled and English-speaking
workforce, low operational costs and improving regulatory
infrastructure, India has the potential to become the hub for
pharmaceutical and biotechnology discovery research,
manufacturing, exporting and healthcare services within the

next few years.
Indian Pharmaceutical Market (IPM)
The Indian pharmaceutical industry has annual sales of over
USD 9 Bn, ranking 13th in terms of value and 4th in terms of
volume, and it has been growing at an annual compound growth
rate of over 10% (versus the overall world pharma industry
growth rate of about 8%). According to a Mckinsey estimate, the
market would grow to USD 25 Bn by 2010 and Indian drugmakers will have an estimated one-third of the global generics
market before then.
Indian Pharmaceutical Market - Key Trends
A huge boost to the local market is coming from the rise of India's
new affluent consumers, who lead more Western-style lives and
are demanding innovative drugs to treat the chronic illnesses
that these changing lifestyles many produce.
The introduction of the product patent law in India from January
1, 2005 has been a fundamental change for the Indian
pharmaceutical industry. This law is expected to put an end
some of the earlier practices followed by Indian companies and
prompt them to focus on discovery-led research to introduce
patented molecules.
The IPM is currently dominated by Indian companies which have
capitalized on the pre-IPR advantage. Now, pharmaceutical
multinationals, absent since the introduction of process-only
patents in the 1970s, have begun to work in the country again.
Whereas domestic Indian pharmaceutical companies are
becoming competitive internationally as markets expand for high
quality, affordable generics and are expanding operations to
newer lucrative markets.
The introduction of the new IPR regime in India would also
trigger consolidation in a big way as smaller companies fail to
cope up with the transition. It would also mean an end of some of
the smaller domestic players.
Post IPR regime, the IPM has become full of challenges.
Some of the notable challenges areManaging a complex distribution chain of more than 18,000
Operational Overview
Glenmark constantly reviews its product-market portfolio
with a view to strengthen sustainable growth. The
Company has driven fiscal growth by focusing internally on
the following areasInvestment in revenue generating assets.
Development of a stronger manufacturing and supply chain
management.
Creation of a superior management information system.
Research continues to drive the Company's vision and Glenmark
Glenmark's manufacturing facilities across the country have

been upgraded or expanded to efficiently meet the anticipated
demands. The manufacturing plant at Baddi, Himachal Pradesh,
India has been built to the highest international standards and
hopes to break-even in its first two years of operations. It
presently supplies the Indian requirements and has produced
batches for filing in the US and Europe. The Company also
benefited from enhanced service and economical costs through
effective vendor management.
To ensure superior control of operations, Glenmark had
instituted a superior managerial and executive information
system, which continues to deliver the desired results and
consequently, enabling the Company to better monitor its
operations and costs.
List of all formulations and API manufacturing units with details of regulatory approvals received from various countries
Formulations
Industry Structure
has justified the substantial investments in drug discovery with

the eight molecules in its pipeline. Two of its lead molecules have
been out-licensed for substantial milestone payments. Going
forward, original drug discovery in India will be complemented by
Glenmark's efforts in biologics in Switzerland.
Location
Production Lines
Regulatory Approvals
Goa, India
Solid orals, external ointments and capsules

for regulated markets
US FDA, MHRA (UK),TPD (Canada), MCC (South Africa),

WHO-GMP, ANVISA (Brazil), Quintiles (a CRO; for
EU-GMP), Ethiopia Health Authority, Brecon (a CRO)
& Tunisia, UAE, Botswana (certificate awaited)
Nasik, India
Solid orals, liquid orals, and external creams,

powders and capsules for regulated markets
WHO-GMP, ANVISA, Ethiopia, Zimbabwe,

Uganda, Nigeria, Tanzania, Ghana, R.D. Congo, Sudan,
MCC, South Africa (Inspected; approval awaited)
Baddi, India
Solid orals, semi-solid and liquid orals as well as

external preparations like lotions, creams,
capsules, etc.
TPD Canada (certificate awaited)

WHO-GMP
Sao Paulo, Brazil
Solid orals, semi-solid and liquid orals
ANVISA
Vysoke Myto,
Czech Republic
Solid orals and semi-solids
SUKL (Czech regulatory authority)
MHRA (Inspected; approval awaited)
API
Location
Production Lines
Ankleshwar, India
Five manufacturing blocks to deliver medium-to-large

quantity production for regulated markets
US FDA; MHRA-UK
Kurkumbh, India
Medium volume multipurpose manufacturing blocks

catering to the manufacture of intermediates
& APIs for India and semi-regulated markets
Local FDA GMP
16
Mohol, India
17
stockists, 250,000 pharmacies, 15,000 hospitals and 500,000

doctors.
Coping with high price-sensitivity with the government playing a
role of moderator.
Performing within an 'underdeveloped' insurance scenario,
resulting with high self-pocket expense for healthcare,
complicated with high population polarization.
Limited access to healthcare owing to the poor infrastructural
developments.
Management Discussion and Analysis
The global pharmaceutical market is forecasted to grow to USD

842 billion in 2010, an equivalent CAGR of 7% over the next five
years. The trend in the growth of the global pharmaceutical
industry is shifting from mature markets to emerging ones.
Although USA, Europe and Japan markets contribute a major
chunk of the world market, the growth is expected to come from
the countries with low per capita GDP, where the availability of
healthcare is expanding and there is an increasing need for
treatments associated with chronic diseases.
World Pharmaceutical Market - Key Trends
Declining R&D productivity, the threat of patent expiry on key
products, and the resultant need to refurbish product portfolios
with new products have led to increased in-licensing of
molecules by the global majors.
The twin-engine of innovation and technology is propelling
marketing of pharma products. Specialty and niche products are
playing a larger role and the generic players are looking forward
to new formulations and new drug delivery systems for growth.
Consolidation has emerged as a promising path to growth for
generic players as it provides them with stronger product
portfolios, quicker market access and overall better
manufacturing efficiencies.
The populations are aging in the major markets of United States,
Japan and Europe and this increases demand and utilization for
the less expensive pharmaceuticals, i.e., generics.
All these factors and the emergence of India as a low-cost, highquality option for outsourcing of research, manufacturing and
other services offer a great opportunity for the Indian
pharmaceutical industry and Indian pharma companies. The
country is on its way to become the preferred global supplier for
bulk drugs and dosage forms, and a hub for contract research
and manufacturing (CRAM), contract research organizations
(CRO) and R&D activities. With its enormous advantages,
including a large, well-educated, skilled and English-speaking
workforce, low operational costs and improving regulatory
infrastructure, India has the potential to become the hub for
pharmaceutical and biotechnology discovery research,
manufacturing, exporting and healthcare services within the

next few years.
Indian Pharmaceutical Market (IPM)
The Indian pharmaceutical industry has annual sales of over
USD 9 Bn, ranking 13th in terms of value and 4th in terms of
volume, and it has been growing at an annual compound growth
rate of over 10% (versus the overall world pharma industry
growth rate of about 8%). According to a Mckinsey estimate, the
market would grow to USD 25 Bn by 2010 and Indian drugmakers will have an estimated one-third of the global generics
market before then.
Indian Pharmaceutical Market - Key Trends
A huge boost to the local market is coming from the rise of India's
new affluent consumers, who lead more Western-style lives and
are demanding innovative drugs to treat the chronic illnesses
that these changing lifestyles many produce.
The introduction of the product patent law in India from January
1, 2005 has been a fundamental change for the Indian
pharmaceutical industry. This law is expected to put an end
some of the earlier practices followed by Indian companies and
prompt them to focus on discovery-led research to introduce
patented molecules.
The IPM is currently dominated by Indian companies which have
capitalized on the pre-IPR advantage. Now, pharmaceutical
multinationals, absent since the introduction of process-only
patents in the 1970s, have begun to work in the country again.
Whereas domestic Indian pharmaceutical companies are
becoming competitive internationally as markets expand for high
quality, affordable generics and are expanding operations to
newer lucrative markets.
The introduction of the new IPR regime in India would also
trigger consolidation in a big way as smaller companies fail to
cope up with the transition. It would also mean an end of some of
the smaller domestic players.
Post IPR regime, the IPM has become full of challenges.
Some of the notable challenges areManaging a complex distribution chain of more than 18,000
Operational Overview
Glenmark constantly reviews its product-market portfolio
with a view to strengthen sustainable growth. The
Company has driven fiscal growth by focusing internally on
the following areasInvestment in revenue generating assets.
Development of a stronger manufacturing and supply chain
management.
Creation of a superior management information system.
Research continues to drive the Company's vision and Glenmark
Glenmark's manufacturing facilities across the country have

been upgraded or expanded to efficiently meet the anticipated
demands. The manufacturing plant at Baddi, Himachal Pradesh,
India has been built to the highest international standards and
hopes to break-even in its first two years of operations. It
presently supplies the Indian requirements and has produced
batches for filing in the US and Europe. The Company also
benefited from enhanced service and economical costs through
effective vendor management.
To ensure superior control of operations, Glenmark had
instituted a superior managerial and executive information
system, which continues to deliver the desired results and
consequently, enabling the Company to better monitor its
operations and costs.
List of all formulations and API manufacturing units with details of regulatory approvals received from various countries
Formulations
Industry Structure
has justified the substantial investments in drug discovery with

the eight molecules in its pipeline. Two of its lead molecules have
been out-licensed for substantial milestone payments. Going
forward, original drug discovery in India will be complemented by
Glenmark's efforts in biologics in Switzerland.
Location
Production Lines
Goa, India
Solid orals, external ointments and capsules

for regulated markets
US FDA, MHRA (UK),TPD (Canada), MCC (South Africa),

WHO-GMP, ANVISA (Brazil), Quintiles (a CRO; for
EU-GMP), Ethiopia Health Authority, Brecon (a CRO)
& Tunisia, UAE, Botswana (certificate awaited)
Nasik, India
Solid orals, liquid orals, and external creams,

powders and capsules for regulated markets
WHO-GMP, ANVISA, Ethiopia, Zimbabwe,

Uganda, Nigeria, Tanzania, Ghana, R.D. Congo, Sudan,
MCC, South Africa (Inspected; approval awaited)
Baddi, India
Solid orals, semi-solid and liquid orals as well as

external preparations like lotions, creams,
capsules, etc.
TPD Canada (certificate awaited)

WHO-GMP
Sao Paulo, Brazil
Solid orals, semi-solid and liquid orals
ANVISA
Vysoke Myto,
Czech Republic
Solid orals and semi-solids
SUKL (Czech regulatory authority)
MHRA (Inspected; approval awaited)
API
Location
Production Lines
Ankleshwar, India
Five manufacturing blocks to deliver medium-to-large

quantity production for regulated markets
US FDA; MHRA-UK
Kurkumbh, India
Medium volume multipurpose manufacturing blocks

catering to the manufacture of intermediates
& APIs for India and semi-regulated markets
Local FDA GMP
16
Mohol, India
17
Consolidated Revenues - (Rs. in Mn)

Particulars
2006-07
(Rs. in Mn)
2005-06
(Rs. In Mn)
Growth
(In %)
USA
2207.52
571.91
285.99%
Latin America
1420.65
764.39
85.85%
ROW/Other
1883.97
1056.17
78.38%
India
4289.72
3936.80
8.96%
Total Formulation (A)
9801.86
6329.27
54.87%
Total API (B)
1318.36
980.99
34.39%
11120.22
7310.26
52.12%
1395.12
265.63
425.21%
12515.34
7575.89
65.20%
Out-licensing Revenue (C)

Consolidated Revenue (A+B+C)
Inventory
The Company paid an interim dividend of 40% on the equity

capital for 2006-07 and a dividend of 7% on preference
shares.
Materials inventory increased from Rs. 685.78 Mn in 2005-06

to Rs. 976.89 Mn in 2006-07, mainly to support the increase
in sale of formulation and API business. Finished goods and
work-in-process inventory increased from Rs. 876.69 Mn in
2005-06 to Rs. 1691.27 Mn in 2006-07 due to an increase in
markets and products.
Equity Capital
Formulation
Consolidated Revenues from Business (A+B)
Dividend
The equity capital has increased from Rs. 237.44 Mn in 200506 to Rs. 240.12 Mn due to allotment of equity on conversion
of stock option of 172,940 and FCCB of 1,164,408 on
conversion of FCCB into equity shares of Rs. 2.00 each during
the year.
Securities Premium Account
Securities premium account has increased to Rs. 797.44 Mn
from Rs. 517.03 Mn mainly due to conversion of FCCB.
General Reserves
The general reserves increased from Rs. 840.80 Mn to
Rs. 980.80 Mn due to transfer of Rs. 140 Mn from the profit &
loss account.
Receivables
Increase in the receivables from Rs. 3815.94 Mn in 2005-06
to Rs. 5711.65 Mn in 2006-07 was mainly attributable to the
increased revenue in the various overseas markets.
Loan and Advances
Loans and advances increased from Rs. 967.61 Mn in 200506 to Rs. 1588.05 Mn in 2006-07.
Cash and Bank Balance
Cash and bank balance increased to Rs. 1057.55 Mn from
Rs. 1055.98 Mn.
Profit and Loss Account
Consolidated Revenues
The gross consolidated revenue increased by 65.20% to
Rs. 12515.34 Mn compared to Rs. 7575.89 Mn in 2005-06.
The major drivers for growth have been USA, LATAM, RoW
markets and API.
International Formulation Business
The overseas formulation business increased to Rs. 5512.14 Mn
as compared to Rs. 2392.47 Mn in FY 2005-06, and mainly
constitutes of revenues from the USA, Latin America and the
RoW markets.
Domestic Formulation
Despite stiff competition, this business segment remained a
strong contributor and added Rs. 4289.72 Mn in 2006-07, an
increase of 9% from 2005-06 (Rs. 3936.80 Mn). This was
largely aided by strong performances by flagship brands, new
product introductions and effective marketing activities.
API and Co-marketing
Revenue from API and co-marketing has shown an increase of
34% by recording revenues of Rs. 1318.36 Mn in 2006-07
compared to Rs. 980.99 Mn in 2005-06.
Cost of Sales
18
Costs of sales were Rs. 4574.71 Mn in 2006-07 against
Rs. 3817.33 Mn in 2005-06. COGS as a percentage to sales

has been improved to 37% as compared to 50% of the previous
year. The improvement in percentage of COGS to sales was
mainly attributable to the licensing revenue and increase in the
international formulation business in USA, LATAM and other
markets.
Selling and Operating Expenses
Selling and operating expenses were Rs. 3245.16 Mn in 200607, an increase of 53% against Rs. 2123.16 Mn in 2005-06.
Selling and operating expenses as a percentage of sales in 200607 were 26% compared with 28% in 2005-06, the improvement
was mainly due to the increase in the sales in the overseas
markets.
Depreciation
The provision for depreciation was Rs. 422.59 Mn in 2006-07
compared with Rs. 232.34 Mn in 2005-06.
Interest
The expenditure on account of interest increased to Rs. 384.08
Mn in 2006-07 compared with Rs. 147.20 Mn in 2005-06.
Current Liabilities
The balance of profit and loss account has increased from
Rs. 2035.30 Mn to Rs. 4678.79 Mn on account of profit
earned during the years.
Current liabilities and provisions increased from Rs. 1719.44

Mn in 2005-06 to Rs. 2328.57 Mn in 2006-07.
Secured Loans
Opportunities
Secured loans increased to Rs. 1749.31 Mn in 2006-07

compared with Rs. 1471.28 Mn in 2005-06. The major
component of the secured loan was the term loans from State
Bank of India, State Bank of Patiala and IDBI Bank.
Research in areas of Large Unmet Needs
Unsecured Loans
Unsecured loans (excluding FCCB) increased to Rs. 3766.24
Low per Capita Expenditure on Pharmaceuticals

Outstanding liability towards FCCB was decreased to
Rs. 3851.52 Mn in 2006-07 compared with Rs. 4438.00 Mn
in 2005-06.
Fixed Assets
The gross block increased to Rs. 7095.49 Mn as at 20062007 mainly on expansion and upgradation of the
manufacturing facilities, additions made in the R & D division
and acquisitions of brands etc.
Provision for Taxation

The provision for taxation inclusive of deferred tax and fringe
benefit tax for the year was Rs. 512.58 Mn compared with
Rs. 240.96 Mn in 2005-06.
Large unmet medical needs exist in various therapeutic

categories (both acute and chronic diseases) world over and
can provide a great opportunity for pharma companies
engaged in original research. Glenmark's current research
focus is in the therapeutic categories of metabolism,
inflammation and oncology.
Investment
Investments decreased from Rs. 196.99 Mn in 2005-06 to
Rs. 187.24 Mn in 2006-07.
India is among the countries which have the lowest per capita
healthcare expenditures at average exchange rate in the
world. The per capita expenditure is USD 31.4 (source:
www.who.int) well below some of the developed countries
like USA (6096.2), UK (2899.7), Canada (3037.6) and Japan
(2823.2). Among the BRICS group of nations, India has the
least per capita health expenditure at average exchange rate
followed by China and Russia at 70.1 and 244.7 respectively.
The total health expenditure is only 5% of India's Gross
Domestic Product (GDP) and is much lower than the developed
countries where the healthcare expenditure ranges between 810% of the GDP. Currently the government's participation in
the total health expenditure is only 17% and the rest is mainly
through out-of-pocket expenses which is very low
corresponding to international standards.
19
Consolidated Revenues - (Rs. in Mn)

Particulars
2006-07
(Rs. in Mn)
2005-06
(Rs. In Mn)
Growth
(In %)
USA
2207.52
571.91
285.99%
Latin America
1420.65
764.39
85.85%
ROW/Other
1883.97
1056.17
78.38%
India
4289.72
3936.80
8.96%
Total Formulation (A)
9801.86
6329.27
54.87%
Total API (B)
1318.36
980.99
34.39%
11120.22
7310.26
52.12%
1395.12
265.63
425.21%
12515.34
7575.89
65.20%
Out-licensing Revenue (C)

Consolidated Revenue (A+B+C)
Inventory
The Company paid an interim dividend of 40% on the equity

capital for 2006-07 and a dividend of 7% on preference
shares.
Materials inventory increased from Rs. 685.78 Mn in 2005-06

to Rs. 976.89 Mn in 2006-07, mainly to support the increase
in sale of formulation and API business. Finished goods and
work-in-process inventory increased from Rs. 876.69 Mn in
2005-06 to Rs. 1691.27 Mn in 2006-07 due to an increase in
markets and products.
Equity Capital
Formulation
Consolidated Revenues from Business (A+B)
Dividend
The equity capital has increased from Rs. 237.44 Mn in 200506 to Rs. 240.12 Mn due to allotment of equity on conversion
of stock option of 172,940 and FCCB of 1,164,408 on
conversion of FCCB into equity shares of Rs. 2.00 each during
the year.
Securities premium account has increased to Rs. 797.44 Mn
from Rs. 517.03 Mn mainly due to conversion of FCCB.
General Reserves
The general reserves increased from Rs. 840.80 Mn to
Rs. 980.80 Mn due to transfer of Rs. 140 Mn from the profit &
loss account.
Receivables
Increase in the receivables from Rs. 3815.94 Mn in 2005-06
to Rs. 5711.65 Mn in 2006-07 was mainly attributable to the
increased revenue in the various overseas markets.
Loan and Advances
Loans and advances increased from Rs. 967.61 Mn in 200506 to Rs. 1588.05 Mn in 2006-07.
Cash and Bank Balance
Cash and bank balance increased to Rs. 1057.55 Mn from
Rs. 1055.98 Mn.
Profit and Loss Account
Consolidated Revenues
The gross consolidated revenue increased by 65.20% to
Rs. 12515.34 Mn compared to Rs. 7575.89 Mn in 2005-06.
The major drivers for growth have been USA, LATAM, RoW
markets and API.
International Formulation Business
The overseas formulation business increased to Rs. 5512.14 Mn
as compared to Rs. 2392.47 Mn in FY 2005-06, and mainly
constitutes of revenues from the USA, Latin America and the
RoW markets.
Domestic Formulation
Despite stiff competition, this business segment remained a
strong contributor and added Rs. 4289.72 Mn in 2006-07, an
increase of 9% from 2005-06 (Rs. 3936.80 Mn). This was
largely aided by strong performances by flagship brands, new
product introductions and effective marketing activities.
API and Co-marketing
Revenue from API and co-marketing has shown an increase of
34% by recording revenues of Rs. 1318.36 Mn in 2006-07
compared to Rs. 980.99 Mn in 2005-06.
Cost of Sales
18
Costs of sales were Rs. 4574.71 Mn in 2006-07 against
Rs. 3817.33 Mn in 2005-06. COGS as a percentage to sales

has been improved to 37% as compared to 50% of the previous
year. The improvement in percentage of COGS to sales was
mainly attributable to the licensing revenue and increase in the
international formulation business in USA, LATAM and other
markets.
Selling and operating expenses were Rs. 3245.16 Mn in 200607, an increase of 53% against Rs. 2123.16 Mn in 2005-06.
Selling and operating expenses as a percentage of sales in 200607 were 26% compared with 28% in 2005-06, the improvement
was mainly due to the increase in the sales in the overseas
markets.
Depreciation
The provision for depreciation was Rs. 422.59 Mn in 2006-07
compared with Rs. 232.34 Mn in 2005-06.
Interest
The expenditure on account of interest increased to Rs. 384.08
Current Liabilities
The balance of profit and loss account has increased from
Rs. 2035.30 Mn to Rs. 4678.79 Mn on account of profit
earned during the years.
Current liabilities and provisions increased from Rs. 1719.44

Mn in 2005-06 to Rs. 2328.57 Mn in 2006-07.
Secured Loans
Opportunities
Secured loans increased to Rs. 1749.31 Mn in 2006-07

compared with Rs. 1471.28 Mn in 2005-06. The major
component of the secured loan was the term loans from State
Bank of India, State Bank of Patiala and IDBI Bank.
Research in areas of Large Unmet Needs
Unsecured Loans
Unsecured loans (excluding FCCB) increased to Rs. 3766.24
Low per Capita Expenditure on Pharmaceuticals

Outstanding liability towards FCCB was decreased to
Rs. 3851.52 Mn in 2006-07 compared with Rs. 4438.00 Mn
in 2005-06.
Fixed Assets
The gross block increased to Rs. 7095.49 Mn as at 20062007 mainly on expansion and upgradation of the
manufacturing facilities, additions made in the R & D division
and acquisitions of brands etc.

The provision for taxation inclusive of deferred tax and fringe
benefit tax for the year was Rs. 512.58 Mn compared with
Rs. 240.96 Mn in 2005-06.
Large unmet medical needs exist in various therapeutic

categories (both acute and chronic diseases) world over and
can provide a great opportunity for pharma companies
engaged in original research. Glenmark's current research
focus is in the therapeutic categories of metabolism,
inflammation and oncology.
Investment
Investments decreased from Rs. 196.99 Mn in 2005-06 to
Rs. 187.24 Mn in 2006-07.
India is among the countries which have the lowest per capita
healthcare expenditures at average exchange rate in the
world. The per capita expenditure is USD 31.4 (source:
www.who.int) well below some of the developed countries
like USA (6096.2), UK (2899.7), Canada (3037.6) and Japan
(2823.2). Among the BRICS group of nations, India has the
least per capita health expenditure at average exchange rate
followed by China and Russia at 70.1 and 244.7 respectively.
The total health expenditure is only 5% of India's Gross
Domestic Product (GDP) and is much lower than the developed
countries where the healthcare expenditure ranges between 810% of the GDP. Currently the government's participation in
the total health expenditure is only 17% and the rest is mainly
through out-of-pocket expenses which is very low
corresponding to international standards.
19
Privatisation of Insurance
The Generics Opportunity
The Indian insurance market currently remains untapped and a

huge opportunity to grow exists as the regulatory
infrastructure is now more conducive to private, as well as,
international players than it was some years ago. The
premiums currently stand at 3% of the total GDP of the
country and at 22% of the population well below the
international averages. Because the Government has opened
the insurance sector to private companies, the availability of
private health insurance is expected to increase access to
private healthcare facilities for millions of families.
It is estimated that about USD 80 billion worth of branded

drugs are to go off-patent by 2012 and Indian companies
are well poised to take advantage of this opportunity with their
control over the entire pharma value chain giving them a
significant control over margins. With increasing competition
and pressures on pricing in the US market, there lies a good
opportunity for expanding into the branded generic SRM
markets which have high growth potentials.
Rising Income Levels and Life Expectancy
The implementation of GATT from 2005 continues to

represent the biggest threat facing the Indian Pharmaceutical
Industry. India started recognizing product patents from 1st
January 2005, thus reducing process reverse engineering
opportunities. Indian companies that have not prepared for this
reality will face intense competition and perhaps de-grow over
the coming years.
Rural Opportunity
Due to India's vast rural population, only one third of the
country's inhabitants have access to medical care. Although
the government is investing in healthcare for the
underprivileged, around 65% of hospitals and 85% of hospital
beds are in urban areas. This situation is expected to improve
in future with access to better medical facility. In India,
only 30% of the population has access to quality medicines
and the treatment gap in almost every chronic disease
segment is more than 65%. Therefore, the opportunity is huge.
A horizontal and vertical expansion in therapeutic segments in all

target markets.
Investments in upgrading capabilities to service a higher revenue
target including asset creation, investments in understanding
regulatory requirements, alliances etc.
Threats
Human Resource Development

The phenomenal growth of the organization presents unique
challenges for the Human Resource function. One of the major
tasks undertaken was to strengthen the team in order to meet
these challenges.
Outlook
Glenmark's short-term and long-term outlook is
encouraging for the following reasonsInvestment in building IP assets, NCEs and biologics.
Integrated approach to markets, presence in R&D, bulk
actives and formulations with an increasing coverage of
markets with its own sales force.
Strong focus on monetizing each element in its integrated
chain.
around 25% of all recruitment. In addition, a major push towards

increased use of e-recruitment has resulted in a drop by almost
50% of total recruitment costs.
Substantial savings on soft skills training by in-house
programs conducted by the Glenmark Center for Learning. While
we delivered an increase of over 33% in training man-days,
costs reduced by 27%.
Enhance transparency across the organization
Building capabilities and nurturing a talent pool comprising

diverse skill sets to deliver results in short term.
Life expectancy of the Indian population in the year 1998

stood at 58 years and has risen to 64 years in 2005. This is on
account of advances in hygiene, medicines and availability of
better healthcare. The income levels will continue to rise
further with increased spending on healthcare. These will
continue to offer attractive growth for pharmaceutical
companies.
Focus on expanding to overseas markets, organically as well as

inorganically.
One such challenge has been the integration of operations spread

across the globe by a common thread. The primary thread
identified was Values that mirror the organizational culture
and its strategic intent yet are easy to identify with across a vast
geographical spread of cultures. The Human Resources team
initiated a study across the organization on what are the facets
of its culture that are perceived as most obvious. This was then
followed by engaging the senior management in a series of
discussions to identify the values that best represent the same.
The values identified are Achievement (achievement of
objectives and a consistent drive towards the organizational
mission), Respect (for all our stakeholders) and Knowledge
(such that it empowers our people to find innovative solutions to
manage change). The next step is to cascade this across the
organization.
Open houses were conducted across all the locations in India.

There has been a start to roll out in select overseas offices and
subsidiaries. The next phase will see coverage across the
organization.
Attracting and retaining the best talent
As part of a bench marking exercise, we participated in the
Hewitt Best Employers' study and the Great Places to Work
survey with very creditable results and tremendous learning for
the team. We aim at converting the same to emerge as an
employer brand of note.
In conclusion, FY 2007 was a year of forward movement for the
team in terms of operational efficiency, employee enhancement
and skill inventory improvement. It has also been a great year for
value addition to the Human Resources group and through that
to the organization as a whole.
Other challenges met and acted on can be summarized

as underBringing robustness and consistency in human resource
information and policies
After a very successful implementation of the HR module of
SAP (an ERP system) across India, we embarked upon a roll out
of this module in US and Switzerland.
Creation of local cadre systems across all our offices with
equalization to a central cadre.
Spread of the performance management system to cover a
majority of employees across global operations.
Reduction in HR costs without drop in quality of service

Innovative means of recruitment resulted in a significant
reduction in recruitment cost and lead time. A recruitment portal
was introduced (www.joinglenmark.com) that now caters to
20
21
Privatisation of Insurance
The Generics Opportunity
The Indian insurance market currently remains untapped and a

huge opportunity to grow exists as the regulatory
infrastructure is now more conducive to private, as well as,
international players than it was some years ago. The
premiums currently stand at 3% of the total GDP of the
country and at 22% of the population well below the
international averages. Because the Government has opened
the insurance sector to private companies, the availability of
private health insurance is expected to increase access to
private healthcare facilities for millions of families.
It is estimated that about USD 80 billion worth of branded

drugs are to go off-patent by 2012 and Indian companies
are well poised to take advantage of this opportunity with their
control over the entire pharma value chain giving them a
significant control over margins. With increasing competition
and pressures on pricing in the US market, there lies a good
opportunity for expanding into the branded generic SRM
markets which have high growth potentials.
Rising Income Levels and Life Expectancy
The implementation of GATT from 2005 continues to

represent the biggest threat facing the Indian Pharmaceutical
Industry. India started recognizing product patents from 1st
January 2005, thus reducing process reverse engineering
opportunities. Indian companies that have not prepared for this
reality will face intense competition and perhaps de-grow over
the coming years.
Rural Opportunity
Due to India's vast rural population, only one third of the
country's inhabitants have access to medical care. Although
the government is investing in healthcare for the
underprivileged, around 65% of hospitals and 85% of hospital
beds are in urban areas. This situation is expected to improve
in future with access to better medical facility. In India,
only 30% of the population has access to quality medicines
and the treatment gap in almost every chronic disease
segment is more than 65%. Therefore, the opportunity is huge.
A horizontal and vertical expansion in therapeutic segments in all

target markets.
Investments in upgrading capabilities to service a higher revenue
target including asset creation, investments in understanding
regulatory requirements, alliances etc.
Threats
Human Resource Development

The phenomenal growth of the organization presents unique
challenges for the Human Resource function. One of the major
tasks undertaken was to strengthen the team in order to meet
these challenges.
Outlook
Glenmark's short-term and long-term outlook is
encouraging for the following reasonsInvestment in building IP assets, NCEs and biologics.
Integrated approach to markets, presence in R&D, bulk
actives and formulations with an increasing coverage of
markets with its own sales force.
Strong focus on monetizing each element in its integrated
chain.
around 25% of all recruitment. In addition, a major push towards

increased use of e-recruitment has resulted in a drop by almost
50% of total recruitment costs.
Substantial savings on soft skills training by in-house
programs conducted by the Glenmark Center for Learning. While
we delivered an increase of over 33% in training man-days,
costs reduced by 27%.
Enhance transparency across the organization
Building capabilities and nurturing a talent pool comprising

diverse skill sets to deliver results in short term.
Life expectancy of the Indian population in the year 1998

stood at 58 years and has risen to 64 years in 2005. This is on
account of advances in hygiene, medicines and availability of
better healthcare. The income levels will continue to rise
further with increased spending on healthcare. These will
continue to offer attractive growth for pharmaceutical
companies.
Focus on expanding to overseas markets, organically as well as

inorganically.
One such challenge has been the integration of operations spread

across the globe by a common thread. The primary thread
identified was Values that mirror the organizational culture
and its strategic intent yet are easy to identify with across a vast
geographical spread of cultures. The Human Resources team
initiated a study across the organization on what are the facets
of its culture that are perceived as most obvious. This was then
followed by engaging the senior management in a series of
discussions to identify the values that best represent the same.
The values identified are Achievement (achievement of
objectives and a consistent drive towards the organizational
mission), Respect (for all our stakeholders) and Knowledge
(such that it empowers our people to find innovative solutions to
manage change). The next step is to cascade this across the
organization.
Open houses were conducted across all the locations in India.

There has been a start to roll out in select overseas offices and
subsidiaries. The next phase will see coverage across the
organization.
Attracting and retaining the best talent
As part of a bench marking exercise, we participated in the
Hewitt Best Employers' study and the Great Places to Work
survey with very creditable results and tremendous learning for
the team. We aim at converting the same to emerge as an
employer brand of note.
In conclusion, FY 2007 was a year of forward movement for the
team in terms of operational efficiency, employee enhancement
and skill inventory improvement. It has also been a great year for
value addition to the Human Resources group and through that
to the organization as a whole.
Other challenges met and acted on can be summarized

as underBringing robustness and consistency in human resource
information and policies
After a very successful implementation of the HR module of
SAP (an ERP system) across India, we embarked upon a roll out
of this module in US and Switzerland.
Creation of local cadre systems across all our offices with
equalization to a central cadre.
Spread of the performance management system to cover a
majority of employees across global operations.
Reduction in HR costs without drop in quality of service

Innovative means of recruitment resulted in a significant
reduction in recruitment cost and lead time. A recruitment portal
was introduced (www.joinglenmark.com) that now caters to
20
21
Risk Management
License successful NCEs/NBEs following early clinical trials,

which result in a faster inflow of revenues.
Build up a pipeline of research molecules further through
buyouts/in-licensing of NCEs and NBEs.
Emerge as a cost effective integrated manufacturer of products
directed at the advanced markets in growing therapeutic areas.
Carefully research target markets and provide adequate support

to a high powered marketing team.
Opportunistic strategic tie-ups through acquisitions and
significant alliances with other companies for building up a
product portfolio.
Commission State-of-the-Art plants that are built to meet
important international regulatory approvals.
Business Portfolio Risk Management

To respond to the impending impact of the pressures faced by
the India Pharmaceutical Market (IPM), Glenmark has
proactively strengthened and established leadership in the key
segments like dermatology and has entered growing sectors like
the oncology, cardiovascular and the anti-diabetes segments.
The Company has a diversified portfolio covering over ten
therapeutic segments. The Company has diversified into niche
categories for the regulated and the semi-regulated markets
which will play a key role in driving future growth. The
Company's domestic revenues have been accompanied by its
growing presence in international markets covering a large
number of countries across the globe; where Glenmark has
invested in setting up competent local management teams. Since
these markets are a focus for development, they are backed by
strong internal systems as well as adequate resources.
unprotected patent environment to the scope latent in the

products for attractive value additions. Presently, Glenmark is
conducting work in areas of inflammation, metabolic disorders
and oncology.
Working on parallel targets to maximize success prospects. The
efforts of its talented NCE research team have delivered
promising results in a short period, with three of its lead
molecules presently in Phase II clinical trials and three more
molecules expected to enter Phase I trials in FY 2008.
Strategic tie-ups for biologics in the area of NBE research; NBE
research would complement NCE research going forward.
Competition Risk Management

Despite price fluctuations, the IPM holds tremendous potential in
the long term. Here is why:
Research Risk Management

Glenmark is prudently balancing the risk involved in its drug
discovery program.
Selecting target segments after exhaustive research across
various parameters, ranging from the existing and projected size
of the therapeutic segment, to the prospective competition in an
Strategy Risk Management

Glenmark's strategy for its growth and development has been
tailored to cater to the new pharmaceutical era to enable it to
enhance shareholder value on a sustainable basis through a
number of initiatives, namely-
Even though India has one of the lowest health spends in the
world; with the imminent changes in urban lifestyles and
increased spending power, it is expected that the Indian
Pharmaceuticals Industry's CAGR will also shift into a higher
gear.
With a rich human resource pool of technically qualified

graduates, high skills in synthetic chemistry, expertise in product
engineering and a low-cost manufacturing base on one hand and
with billions of dollars worth of products starting to go offpatent from 2005 on the other, India is poised to grow
internationally as well.
Glenmark will benefit by leveraging its local advantage and
competing in the global generics markets and thereby make up
for any revenue dips in India.
Currency Risk Management
Glenmark has selectively circumvented its foreign exchange
(forex) positions in order to limit the impact due to volatile forex
movements and has supported it by instituting a component
forex management system.
Environment Risk Management

Glenmark is committed to managing its waste in a sound and
responsible manner and adhering to norms stipulated by the
regulatory authorities. This is reflected in its investments in
world-class pollution-mitigating plants and practices, which
have helped treat its solid, liquid and gaseous waste effectively.

22
23
Risk Management
License successful NCEs/NBEs following early clinical trials,

which result in a faster inflow of revenues.
Build up a pipeline of research molecules further through
buyouts/in-licensing of NCEs and NBEs.
Emerge as a cost effective integrated manufacturer of products
directed at the advanced markets in growing therapeutic areas.
Carefully research target markets and provide adequate support

to a high powered marketing team.
Opportunistic strategic tie-ups through acquisitions and
significant alliances with other companies for building up a
product portfolio.
Commission State-of-the-Art plants that are built to meet
important international regulatory approvals.

To respond to the impending impact of the pressures faced by
the India Pharmaceutical Market (IPM), Glenmark has
proactively strengthened and established leadership in the key
segments like dermatology and has entered growing sectors like
the oncology, cardiovascular and the anti-diabetes segments.
The Company has a diversified portfolio covering over ten
therapeutic segments. The Company has diversified into niche
categories for the regulated and the semi-regulated markets
which will play a key role in driving future growth. The
Company's domestic revenues have been accompanied by its
growing presence in international markets covering a large
number of countries across the globe; where Glenmark has
invested in setting up competent local management teams. Since
these markets are a focus for development, they are backed by
strong internal systems as well as adequate resources.
unprotected patent environment to the scope latent in the

products for attractive value additions. Presently, Glenmark is
conducting work in areas of inflammation, metabolic disorders
and oncology.
Working on parallel targets to maximize success prospects. The
efforts of its talented NCE research team have delivered
promising results in a short period, with three of its lead
molecules presently in Phase II clinical trials and three more
molecules expected to enter Phase I trials in FY 2008.
Strategic tie-ups for biologics in the area of NBE research; NBE
research would complement NCE research going forward.

Despite price fluctuations, the IPM holds tremendous potential in
the long term. Here is why:

Glenmark is prudently balancing the risk involved in its drug
discovery program.
Selecting target segments after exhaustive research across
various parameters, ranging from the existing and projected size
of the therapeutic segment, to the prospective competition in an

Glenmark's strategy for its growth and development has been
tailored to cater to the new pharmaceutical era to enable it to
enhance shareholder value on a sustainable basis through a
number of initiatives, namely-
Even though India has one of the lowest health spends in the
world; with the imminent changes in urban lifestyles and
increased spending power, it is expected that the Indian
Pharmaceuticals Industry's CAGR will also shift into a higher
gear.
With a rich human resource pool of technically qualified

graduates, high skills in synthetic chemistry, expertise in product
engineering and a low-cost manufacturing base on one hand and
with billions of dollars worth of products starting to go offpatent from 2005 on the other, India is poised to grow
internationally as well.
Glenmark will benefit by leveraging its local advantage and
competing in the global generics markets and thereby make up
for any revenue dips in India.
Glenmark has selectively circumvented its foreign exchange
(forex) positions in order to limit the impact due to volatile forex
movements and has supported it by instituting a competent forex
management system.

Glenmark is committed to managing its waste in a sound and
responsible manner and adhering to norms stipulated by the
regulatory authorities. This is reflected in its investments in
world-class pollution-mitigating plants and practices, which
have helped treat its solid, liquid and gaseous waste effectively.

22
23
Financial Statements
24
Auditors Report
Auditors report to the Board of Directors of Glenmark Pharmaceuticals Limited on the Consolidated Financial Statements of Glenmark
Pharmaceuticals Limited and its Subsidiaries.
1. We have audited (refer para 3) the attached consolidated Balance Sheet of Glenmark Pharmaceuticals Limited (the Company)
and its subsidiaries (the Group) as at March 31, 2007, the related consolidated Profit and Loss Account and the consolidated
Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report.
These consolidated financial statements are the responsibility of the Companys management and have been prepared by
the management on the basis of separate financial statements and other financial information regarding components. Our
responsibility is to express an opinion on these consolidated financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
3. We did not audit the financial statements of subsidiaries, whose financial statements reflect the Groups share of total assets of
Rs.139,180.58 lakhs as at March 31, 2007 and the Groups share of total revenues of Rs.65,043.43 lakhs and net cash inflows
amounting to Rs. 7,792.53 lakhs for the year ended on that date as considered in the consolidated financial statements. These
financial statements and other information have been audited by other auditors whose reports have been furnished to us, and
our opinion, in so far as it relates to the amounts included in respect of these subsidiaries, is based solely on the reports of other
auditors.
4. We report that the consolidated financial statements have been prepared by the Companys management in accordance with the
requirements of Accounting Standard 21, Consolidated Financial Statements issued by the Institute of Chartered Accountants of
India.
5. Based on our audit and on consideration of the reports of other auditors on separate financial statements and on the other
financial information of the components, in our opinion and to the best of our information and according to the explanations
given to us, the attached consolidated financial statements give a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at March 31, 2007;
b) in the case of the consolidated Profit and Loss Account, of the profit for the year ended on that date; and
c) in the case of the consolidated Cash Flow Statement, of the cash flows for the year ended on that date.
For and on behalf of Price Waterhouse

Chartered Accountants
Partha Ghosh
Partner
Membership Number F-55913
Place: Mumbai,
Date: August 13, 2007
25
Consolidated Balance Sheet

Rs. In (000s)
As at 31st March,
I. SOURCES OF FUNDS
1.
2.
3.
Schedules
2007
2006
SHAREHOLDERS FUNDS
a) Share Capital
b) Reserves and Surplus
1
2
240,116
6,623,534
6,863,650
437,486
3,493,609
3,931,095
LOAN FUNDS
a) Secured Loans
b) Unsecured Loans
3
4
DEFERRED TAX LIABILITY

Less: Deferred Tax Asset
5
6
1,749,306
7,617,757
9,367,063
812,690
92,698
719,992
16,950,705
1,471,284
5,882,753
7,354,037
499,929
79,976
419,953
11,705,085
7,095,490
1,165,094
5,930,396
2,173,888
8,104,284
187,237
5,299,531
768,296
4,531,235
1,273,418
5,804,653
196,988
TOTAL
II. APPLICATION OF FUNDS

1.
2.
3.
FIXED ASSETS
a) Gross Block
b) Less : Depreciation
c) Net Block
d) Capital Work-in-progress
INVESTMENTS
CURRENT ASSETS, LOANS AND ADVANCES
a) Inventories
b) Sundry Debtors
c) Cash and Bank Balances
d) Loans and Advances
8
9
10
11
12
2,697,092
5,711,645
1,057,549
1,588,046
11,054,332
1,575,305
3,815,943
1,055,984
967,612
7,414,844
Less : CURRENT LIABILITIES AND PROVISIONS

a) Current Liabilities
b) Provisions
13
14
2,328,566
66,582
2,395,148
8,659,184
-
1,719,439
8,072
1,727,511
5,687,333
16,111
16,950,705
11,705,085
NET CURRENT ASSETS

4. MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted)
TOTAL
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Schedules referred to above and notes attached thereto form an
integral part of the Balance Sheet.
15
22
This is the Balance Sheet referred to in our report of even date.

For and on behalf of
Price Waterhouse
Partha Ghosh
Partner
Membership Number - F 55913
Mumbai, August 13, 2007
26
For and on behalf of the Board of Directors
Glenn Saldanha
Rajesh Desai
Director - Finance
Sanjay Chowdhary
Assistant Company Secretary
Consolidated Profit And Loss Account

Rs. In (000s)
Schedules
For the year ended 31st March,

INCOME
Sales & Operating Income
Other income
2007
2006
16
17
12,515,336
156,992
12,672,328
7,575,892
128,203
7,704,095
18
19
7
20
21
4,574,712
3,245,159
422,589
384,076
432,609
9,059,145
3,613,183
3,817,334
2,123,161
232,344
147,196
263,344
6,583,379
1,120,716
329,984
(181,219)
20,387
303,700
39,731
3,100,600
2,035,295
5,135,895
6,942
974
95,756
13,430
200,000
140,000
4,678,793
140,886
(35,071)
101,501
33,640
879,760
1,401,367
2,281,127
14,000
1,964
83,105
11,656
135,107
2,035,295
25.98
23.12
2.00
7.28
6.41
2.00
EXPENDITURE
Cost of Sales
Depreciation/Amortisation
Interest (net)
Research and Development Expenses
PROFIT BEFORE TAX

- Current Year [includes wealth tax provision Rs. 230(2006-Rs.221)]
- MAT Credit Entitlement
- Prior Period Tax
- Deferred Tax
- Fringe Benefit Tax
NET PROFIT AFTER TAX
Balance Profit Brought Forward
NET PROFIT AVAILABLE FOR APPROPRIATION
Dividend on Preference Shares
Tax on Dividend on Preference Shares
Interim Dividend on Equity Shares
Tax on Interim Dividend on Equity Shares
Transfer to Capital Redemption Reserve
Transfer to General Reserve
BALANCE CARRIED TO BALANCE SHEET
Earnings Per Share (Rs.) [Refer Note 4 of Schedule 22]
Basic
Diluted
Face Value of Shares
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
integral part of the Profit and Loss Account.
22
This is the Profit and Loss Account referred to in our report of even date.
Price Waterhouse
Partha Ghosh
Partner
Glenn Saldanha
Rajesh Desai
Director - Finance
Sanjay Chowdhary
27
Consolidated Cash Flow Statement

Rs. In (000s)
Year ended 31st March,

A. Cash Flow from Operating Activities:
Net Profit before tax
Adjustments for:
Depreciation
Interest Expense
Interest Expense - Finance lease
Interest Income
Income from Investment - Dividends
(Profit)/Loss on Fixed Assets sold
Deferred Revenue Expenditure Written off
Provision for Bad & Doubtful Debts
Provision for Doubtful Advances Written back
Provision for Gratuity & Leave Encashment
Unrealised foreign exchange (gain)/loss
Employee stock option plan
Operating Profit Before Working Capital Changes
Adjustments for changes in working capital :
- (Increase)/Decrease in Sundry Debtors
- (Increase)/Decrease in Other Receivables
- (Increase)/Decrease in Inventories
- Increase/(Decrease) in Trade and Other Payables
Cash Generated from Operations
- Taxes (Paid)/Received (Net of Tax deducted at source)
Net Cash From/(Used in) Operating Activities
2007
2006
3,613,183
1,120,716
422,589
395,386
2,872
(14,182)
(2)
(11,392)
16,111
26,213
21,325
4,472,103
232,344
180,704
968
(34,476)
(1,210)
796
3,450
25,632
(800)
(2,145)
35,361
(311)
1,561,029
(1,950,323)
(571,161)
(1,121,787)
380,560
1,209,392
(276,981)
932,411
(1,460,599)
(319,387)
(381,090)
504,178
(95,869)
(172,482)
(268,351)
(1,896,573)
(900,470)
86,367
9,751
(1,292)
14,400
2
(2,687,815)
(2,189,245)
(3,013)
(429,056)
68,283
(44,871)
(5,160)
34,347
1,210
(2,567,505)
B. Cash Flow from Investing Activities:

Purchase of Fixed Assets
Acquisition of Fixed Assets
Capital Work in Progress
Proceeds from Sale of Fixed Assets
Proceeds from Sale of Investments
Purchase of Investments
Finance Lease Rent Payment Against Principal Amount
Interest Received
Dividend Received
Net Cash Used in Investing Activities
28
Consolidated Cash Flow Statement

Rs. In (000s)
2007
2006
311,343
(133,982)
(78,727)
1,811,695
358,041
(2,872)
(391,878)
(102,247)
(14,404)
1,756,969
1,565
1,055,984
1,057,549
3,668
114,208
(54,934)
(203,644)
2,759,773
385,895
(968)
(180,058)
(179,590)
(25,265)
2,619,085
(216,771)
1,272,755
1,055,984
2,496
31,683
139
80,721
942,510
1,057,549
2,118
39,728
809,846
56,956
147,336
1,055,984
C. Cash Flow from Financing Activities:

Proceeds from Fresh Issue of
Share Capital (including Securities Premium)
Exchange Fluctuation Reserve
Issue expenses of FCCB
Proceeds/(Repayment) of Long Term Borrowings
Proceeds/(Repayment) of Short Term Borrowings
Proceeds from Cash Credits (Net)
Finance Lease Rent (Interest Part only)
Interest Paid
Dividend Paid
Dividend Tax Paid
Net Cash From Financing Activities
Net Increase/(Decrease) in Cash & Cash Equivalents
Cash and Cash Equivalents as at 31st March06
Cash and Cash Equivalents Comprise
Cash
Deposits with Scheduled Banks
Deposits with Non-scheduled Banks
Balance with Scheduled Banks
Balance with Non-scheduled Banks
Notes :
1
The Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting Standard - 3 on Cash Flow
Statements issued by the Institute of Chartered Accountants of India.
2
Cash and Cash Equivalents Includes Rs. 3,997 which are not available for use by the Company. (Refer Schedule 13 to the
Consolidated Financial Statements)
Figures in bracket indicate Cash outgo.
This is the Cash Flow Statement referred to in our report of even date.
Price Waterhouse
Partha Ghosh
Partner
Glenn Saldanha
Rajesh Desai
Director - Finance
Sanjay Chowdhary
Assistant Company
Secretary
29
Schedules Forming Part Of The Consolidated Balance Sheet

Rs. In (000s)
As at 31st March,
1. SHARE CAPITAL
Authorised
175,000,000 (2006 -- 150,000,000) Equity Shares of Rs. 2 each
4,000,000 (2006 -- 4,000,000) Cumulative Redeemable
Non Convertible Preference Shares of Rs. 100 each
Unclassified Capital
Issued, Subscribed and Paid-up
120,058,108 (2006 -- 118,720,760) Equity Shares of Rs. 2 each
Nil (2006 -- 2,000,000) 7% Redeemable Cumulative
Non-Convertible Preference Shares of Rs.100 each
Note
2007
2006
350,000
300,000
400,000
-
400,000
50,000
240,116
-
237,442
200,000
(Redeemed on 28th September, 2006 as per terms of issue )

Equity Share Warrants
Nil (2006 -- 440,000) Equity Share Warrants of Rs. 0.10 each
1
44
TOTAL
240,116
437,486

Notes :
1. In terms of Employee Stock Option Plan approved by the members Nil (2006 -- 440,000) convertible warrants are outstanding
with Glenmark Pharmaceuticals Limited Employees Welfare Trust. During the year 440,000 warrants were cancelled.
2. During the year ended March 31, 2007 the Company, pursuant to Employee Stock Option Scheme 2003, has granted 500,500
(2006 - 333,000) options at market price as defined in SEBI ( ESOS ) Guidelines and cancelled 474,800 (2006 - 537,150)
options [Number adjusted after split of face value and issue of bonus shares]
3. During the year 172,940 (2006 - 89,620) (Number of options and price were adjusted after split of face value and issue of
bonus shares) were converted into Equity Shares under the Employee Stock Option Scheme, 2003. As at March 31, 2007
1,689,340 (Number adjusted after split of face value and issue of bonus shares) options were outstanding under Employee Stock
Option Scheme, 2003. On exercise of the options so granted under Employee Stock Option Scheme, 2003, the paid up
Equity Share Capital of the Company will increase by a like number of shares.
4. During the year, 11,500 Zero Coupen Foreign Currency Convertible Bonds of USD 1,000 each aggregating USD 11.5 million
were converted into 1,164,408 equity shares of Rs.2 each.
5. Of the above 79,185,570 (2006 - 79,185,570) Equity Shares of Rs. 2 each are allotted as fully paid-up Bonus Shares by
Capitalisation of Reserves.
30

Rs. In (000s)
As at 31st March,
2. RESERVES AND SURPLUS
Balance at the beginning of the year
Add: Issue of Shares/Conversion of ESOP
Add: Conversion of FCC Bonds during the year
Add: Calls in Arrears received during the year
Less : Issue cost of FCCB [Net of tax]
Add: Writeback of Redemption Premium for FCC Bonds converted
during the year.
Less : Redemption Premium of FCCB
Closing Balance
General Reserve
Add : Transferred from Profit & Loss Account
Closing Balance
Capital Redemption Reserve
Add : Transferred from Profit & Loss Account on Redemption of
Preference Share
Closing Balance
Capital Reserve
Exchange Fluctuation Reserves
Addition/(Reduction) during the year
Closing Balance
Employee Stock Option
Employee Stock Options outstanding
Less : Conversion of Option
Less : Cancellation of Option
Note
2006
517,033
8,953
499,760
48,914
758,689
3,449
19
36,443
-
277,218
797,442
208,681
517,033
840,797
140,000
980,797
705,690
135,107
840,797
A
Deferred Employee Stock Compensation
Less : Amortisation of ESOP expense.
2007
200,000
200,000
1,127
1,127
99,357
(133,982)
(34,625)
(14,851)
114,208
99,357
4,678,793
6,623,534
370
202
168
59
31
28
B
Net Employee Stock Option
A-B
Profit and Loss Account Balance
2,035,295
TOTAL
3,493,609
Note :
1. During the year ended March 31, 2007, 200,000 7% Redeemable Cumulative Non-Convertible Preference Shares of Rs.100
each were redeemed as per the terms of issue.
3. SECURED LOANS
Term Loan
1
675,000
743,853
Working Capital Facilities
2
1,022,631
664,590
Other Loans
3
51,675
62,841
TOTAL
1,749,306
1,471,284
Notes :
1. Term loan is secured by way of exclusive charge as the case may be, at certain locations, on Companys fixed assets both
present and future.
2. Working Capital Facilities from Bank are secured by Hypothecation of Stocks of raw materials, packing materials, finished
goods, work in progress, receivables and equitable mortgage on fixed assets at the manufacturing facility at Nasik and Research
and Development centre at Sinnar, Nasik.
3. Other Loans are secured by way of Hypothecation of certain Premises, Equipments and Vehicles.
31

Rs. In (000s)
As at 31st March,
4. UNSECURED LOANS
32
Note
2007
2006
Short Term Loan from Banks

3,743,193
1,427,978
Foreign Currency Convertible Bonds
1
3,851,520
4,438,000
Security Deposit
12,599
6,330
Deferred Sales Tax Loan
2
10,445
10,445
TOTAL
7,617,757
5,882,753

Notes :
1. FCCB Issue
A) The Company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each ( Rs.1,331,700 at
issue)
(i) Convertible at the option of the bondholder at any time on or after 11th November, 2007 but prior to the close of
business on 29th November, 2010 at a fixed exchange rate of Rs. 44.94 per 1 USD and the price greater of 35% of
the average of the order book volumeweighted-average-price of a share on each Trading Day during the period commencing on 10th September, 2007 and ending on 10th November, 2007 and the Floor Price (Rs.317.25) of par value
of Rs. 2 per share.
(ii) Redeemable in whole but not in part at the option of the Company on or after 10th January, 2010 if closing price
of the share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such
redemption is given was at least 130% of the applicable Early Redemption Amount divided by the Conversion Ratio.
(iii) Redeemable on maturity date on 11th January, 2011 at 139.729% of its principal amount if not redeemed or converted earlier. The redemption premium of 39.729% payable on maturity of the bond if there is no conversion of the
bond to be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of bonds.
B) The Company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each ( Rs.873,200 at
issue)
(i) Convertible at the option of the bondholder at any time on or after 28th March, 2005 but prior to the close of
business on 2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and price of Rs. 862.394 per
share of par value of Rs. 2 per share subject to adjustment in certain events i.e. issue of Bonus Shares, Division,
Consolidation, Reclassification of Shares, etc.
(ii) Redeemable in whole but not in part at the option of the Company on or after 15th February, 2008 if closing price
of the Share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such
(iii) Redeemable on maturity date on 16th February, 2010 at 133.74% of its principal amount if not redeemed or
converted earlier. The redemption premium of 33.74% payable on maturity of the Bond if there is no conversion of
the Bond to be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of
Bonds. During the year out of the above, 11,500 FCC Bonds of USD 1,000 each aggregating to USD 11.5 million
were converted into 1,164,408 equity shares of Rs.2 each.
C) The Company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs. 2,183,000 at
issue)
business on 2nd January, 2010 at a fixed exchange rate of Rs. 43.66 per 1 USD and the price greater of 35% of
the average of the order book volumeweighted-average-price of a share on each Trading Day during the period commencing on 15th September, 2006 and ending on 14th November, 2006 and the Floor Price (Rs. 500) of par value of
Rs. 2 per share.
(iii) Redeemable on maturity date on 16th February, 2010 at 134.07% of its principal amount if not redeemed or converted earlier. The Redemption Premium of 34.07% payable on maturity of the Bond if there is no conversion of the
Bond to be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of Bonds.
2. The Company has availed of an interest free sales tax deferral loan under Part I of the 1983 and 1988 Package Schemes of the
Government of Maharashtra, repayable after twelve years in six half-yearly installments.

Rs. In (000s)
As at 31st March,
5. DEFERRED TAX LIABILITY [Refer Note (2)(ix) of Schedule 22]
Liabilities
Depreciation
Others
TOTAL
2007
2006
799,097
13,593
812,690
499,929
499,929
36,814
55,884
92,698
28,041
48,569
3,366
79,976
6. DEFERRED TAX ASSET [ Refer Note (2)(ix) of Schedule 22]

Assets
Provision for Bad Debts and Doubtful Advances
Unabsorbed Losses and Depreciation
Others
TOTAL

7. FIXED ASSETS [Refer note (2)(ii),(2)(x),(2)(xii),(2)(xiii) and (7) of Schedule 22]

Rs. In (000s)
GROSS BLOCK
As on
1st Apr,
2006
Acquisition
during
the year
Additions
during
the year
Consolidation
Adjustment
DEPRECIATION/AMORTISATION
Deduction
As on
31st Mar,
2007
As on
1st Apr,
2006
Acquisition
NET BLOCK
For the
year
Consolidation
Adjustment
Deduction
As on
As on
31st Mar, 31st Mar,
2007
2007
As on
31st Mar,
2006
Tangible assets
Freehold Land
34,431
Leasehold Land
108,978
22,400
Factory Buildings
514,018
135,776
Other Buildings &

Premises
329,890
8,678
Plant and Machinery
544,704
239,793
Furniture and Fixtures
254,558
47,009
1,226,292
248,107
(1,145)
85,892
25,079
958
382,742
8,563
68,959
26,915
649
1,749,067
1,106,082
21,991
Equipments
Vehicles
34,431
34,431
(4,259)
128,139
3,169
4,458
(149)
(268)
7,210
120,929
105,809
(22,065)
627,729
43,925
18,248
(4,952)
57,221
570,508
470,093
3,379
(32,521)
309,426
25,282
19,300
(53)
(2,995)
41,534
267,892
304,608
2,362
(5,838)
781,021
77,813
35,026
997
(1,809)
112,027
668,994
466,891
475
(7,674)
294,368
77,786
35,907
(64)
(3,143)
110,486
183,882
176,772
(4,766) 1,468,488
248,279
120,854
(646)
(2,798)
365,689 1,102,799
978,013
86,920
30,133
14,893
445
(11,343)
391,305
27,500
39,042
944
96,523
21,202
14,454
(56)
2,877,140
213,207
120,407
99
1,020
(25,009)
34,431
34,128
52,792
55,759
67,486
323,819
355,242
35,600
60,923
47,757
333,713 2,543,427
1,535,860
Intangible assets
- Goodwill
- Computer software
- Brands
TOTAL
5,299,531
1,859,839
38,252
(102,132) 7,095,490
768,296
422,589
1,517
Previous Year
3,890,385
4,199 1,358,138
136,670
(89,861) 52,99,531
518,175
1,186
232,344
22,166
(27,308) 1,165,094 5,930,396
(5,575)
Capital Work-in-process including Capital advances.
4,531,235
768,296 4,531,235
3,372,210
2,173,888
1,273,418
Notes :
1. Equipment and Other Premises include assets aggregating Rs. 20,847 (2006 - Rs. 39,290) [net book value as at March 31,
2007 - Rs.9,767 (2006 - Rs.27,446)], and Rs.59,455 (2006 -- Rs. 56,574 ) [net book value as at March 31, 2007- Rs. 44,695
(2006 -- Rs. 53,833) respectively, which have been acquired on finance lease.
2. Additions to assets include Rs.Nil (2006 -- Rs. 6,898) being borrowing costs.
3. Capital Work in progress includes :
At Aurangabad Plant
At Ankleshwar Plant
At Baddi Plant
At Goa Plant
At R&D Centre Mahape including Product development
At Servycal S.A.
Products, Patent, Brands under registration
Capital Advances
Other work-in-processes
2007
206,454
6,883
105,729
1,004,234
7,086
603,844
225,677
13,981
2006
9,977
124,299
880
346,548
970
696,883
82,104
11,757
33

Rs. In (000s)
As at 31st March,
8. INVESTMENTS [Refer Note (2)(iv) of Schedule 22 ]
2007
2006
405
405
34
439
34
439
22
20
48
12
20
48
2,130
2,130
LONG TERM INVESTMENTS

Quoted - traded
Equity shares
9,000 (2006 -- 9,000) Bank of India of Rs.10 each [Market Value
Rs.1,510 (2006 -- Rs. 1,201)]
1,209 (2006 -- 1,209) IDBI Bank Limited of Rs. 10 each [Market
Value Rs.94 (2006 -- Rs.95)]
Unquoted - non trade
National Savings Certificate -Sixth Issue
1 (2006 -- 1) Time Share of Dalmia Resorts Limited
1 (2006 -- 1) Equity Share of Esquados 340,000 of Glenmark
Pharmaceutica Limitada, Lisbon (Portugal)
213,032 ( 2006 - 213,032 ) Equity Shares of Bharuch Eco-Aqua
Infrastructure Limited of Rs.10 each, fully paid up .
Nil ( 2006 - 100,000) 12% cumulative preference shares of Rs 100
each fully paid up of Cheryl Laboratories (P) Limited
1,350,000 ( 2006 - 1,350,000) 7% cumulative preference shares
of Rs 100 each fully paid up of Marksans Pharma Ltd
Investment with Napo Pharmaceuticals Inc
[ 1,176,471 ( 2006 - 1,176,471 ) Preferred shares of USD 0.85 each ]
1 ( 2006 - 1 ) Bond of Titulos divida publica, Brazil
1 ( 2006 - 1 ) Bond of Creditos judiciarios da Uniao, Brazil
TOTAL
9.
10,000
135,000
135,000
43,560
43,560
2,847
3,171
186,798
187,237
2,734
3,045
196,549
196,988
820,446
156,443
685,045
28,932
1,006,226
2,697,092
599,218
86,558
335,276
12,838
541,415
1,575,305
569,825
109,760
679,585
109,760
569,825
729,961
83,679
813,640
83,679
729,961
5,141,820
5,141,820
5,711,645
3,085,982
3,085,982
3,815,943
INVENTORIES [Refer Note (2)(v) of Schedule 22]

(As certified by the management)
Raw Materials
Packing Materials
Work-in-Process
Stores and Spares
Finished Goods*
TOTAL
* Includes Stock in transit Rs.8,309 (2006 - Rs.Nil )
10. SUNDRY DEBTORS

Outstanding for more than six months
Secured, considered good
Unsecured, considered good
Unsecured, considered doubtful
Less: Provision for doubtful debts
Other debtsSecured, considered good
34
TOTAL

Rs. In (000s)
As at 31st March,
11. CASH AND BANK BALANCES
2007
2006
Cash in hand
2,496
2,118
Balances with Scheduled Banks
- Current Accounts
75,700
49,374
- Margin Money Account
27,732
35,068
- EEFC Account
5,021
7,582
- Deposit Accounts
3,951
4,660
Balances with Non Scheduled Banks
- Current Accounts
942,510
147,336
- Deposit Accounts
139
809,846
TOTAL
1,057,549
1,055,984
The balances in the margin money accounts are given as security against guarantees issued by banks on behalf of the
Company.
12. LOANS AND ADVANCES (unsecured, considered good)

Advance to Vendors
Advances recoverable in cash or kind or for value to be received
Advance tax (net of provision) [ Refer Note (2) (ix) of Schedule 22]
MAT Credit Entitlement
Balance with Excise Authorities
Deposits
TOTAL
288,940
752,231
212,555
243,178
91,142
1,588,046
147,712
496,748
36,048
53,562
124,873
108,669
967,612
1,569
977
1,599,001
1,053
15,295
1,066,887
3,997
3,546
736
256,322
465,964
2,328,566
2,931
395,575
234,152
1,719,439
230
6,488
59,864
66,582
257
7,815
8,072
13. CURRENT LIABILITIES

Acceptances
Sundry creditors - Small scale industrial undertakings
- Others
Investor Education and Protection Fund shall be credited by
- Unclaimed Dividend
[There are no amounts due and outstanding to be credited to Investor Education and
Protection Fund.]
Advances from Customers
Other Liabilities
Interest accrued but not due
TOTAL
14. PROVISIONS
Wealth Tax
Provision for Fringe Benefit Tax
Income-tax (net of advance tax) [Refer Note (2) (ix) of Schedule 22]
TOTAL
15. MISCELLANEOUS EXPENDITURE [Refer Note (2)(xi) of Schedule 22]

(to the extent not written off or adjusted)
Pre-operative/Preliminary expenses
TOTAL
16,111
16,111
35
Schedules Forming Part Of The Consolidated Profit & Loss Account

Rs. In (000s)

16. SALES AND OPERATING INCOME [Refer Note (2) (vii) of Schedule 22]
2007
2006
Sale of goods and IP assets*

12,484,516
7,564,066
Income from services
30,820
11,826
TOTAL
12,515,336
7,575,892
* includes Sales Tax and Excise Duty aggregating Rs 328,467 (2006 -- Rs 258,281) and Rs 350,096 (2006 -- Rs 623,495)
respectively.
17. OTHER INCOME

Lease Rent
Dividend received
Exchange gain
Export Incentive
Profit on sale of fixed assets
Miscellaneous income
TOTAL
6,779
2
81,367
20,220
11,392
37,232
156,992
1,907
1,210
66,039
23,986
800
34,261
128,203
213,469
8,083
201,086
2,712,121
1,266,647
294,899
328,467
155,113
126,425
34,212
9,004
39,766
(814,580)
4,574,712
140,293
4,350
167,374
1,901,578
619,705
556,115
258,281
88,410
63,358
33,336
2,881
48,207
(66,554)
3,817,334
18. COST OF SALES

Salary, wages and allowances
Contribution to PF and Other Funds
Labour charges
Consumption of raw & packing materials
Purchase of Trading goods
Excise duty paid
Sales tax
Power, fuel and water charges
Consumable stores
Repairs and maintenance - plant and machinery
Rent, rates and taxes
Other manufacturing expenses
(Increase)/decrease in inventory
TOTAL
36
Schedules Forming Part Of The Consolidated Profit & Loss Account

Rs. In (000s)

19. SELLING AND OPERATING EXPENSES
Salary and allowances
Staff welfare expenses
Directors salaries and allowances
Incentive and commission
Sales promotion expenses
Export Commission
Commission on sales
Travelling expenses
Freight outward
Telephone expenses
Rates and taxes
Provision for doubtful debts
Insurance premium
Electricity charges
Rent
Legal & Professional Expenses
Repairs & Maintenance
Auditors remuneration
- Audit fees *
- Other matters
- Out of pocket expenses
Loss on sale of assets
Amortisation of Pre-operative/Preliminary expenses
Other operating expenses
TOTAL
* Audit fees includes fees paid to Statutory Auditors of Subsidiary companies.
2007
2006
937,250
32,990
22,846
57,645
61,620
481,544
48,790
28,630
371,101
183,567
37,730
31,962
26,213
41,476
10,733
143,745
259,819
85,258
588,651
27,244
12,295
43,154
38,695
336,881
20,893
41,381
311,468
135,518
30,463
34,389
25,632
21,183
10,833
50,685
98,711
76,382
9,184
30
103
20,002
352,921
3,245,159
5,445
40
97
796
9,365
202,960
2,123,161
113,434
284,824
398,258
98,028
83,644
181,672
14,182
14,182
384,076
34,476
34,476
147,196
20. INTEREST (Net)

On loans from banks
Other interest
Less: Interest Received
On deposits with banks
TOTAL
21. RESEARCH AND DEVELOPMENT EXPENSES [Refer Note (2) (viii)of Schedule 22]
Salary and other allowances
Directors Remuneration
Consumable & Chemicals
Electricity charges
Repairs and maintenance
Insurance premium
Other expenses
TOTAL
151,825
8,719
2,210
19,280
127,326
14,083
3,072
968
105,126
432,609
113,211
6,141
3,947
235
48,166
8,249
6,719
1,075
75,601
263,344 37
Notes To The Consolidated Financial Statements

FOR THE YEAR ENDED 31ST MARCH, 2007
22 - NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1)
38
PRINCIPLES OF CONSOLIDATION
(a) The consolidated financial statements relate to Glenmark Pharmaceuticals Limited and its subsidiaries (the Group). The
financial statements of Subsidiary Companies have been consolidated on a line by line basis by adding together the book
value of like items of assets, liabilities, income and expenses after fully eleminating intra-group balances and unrealised
profits/losses on intra-group transactions in accordance with Accounting Standard (AS-21) - Consolidated Financial
(b) Glenmark Pharmaceuticals Limited (GPL), the holding company, had controlling interest in the following entities as at
31st March, 2007:
Name of the Subsidiary
Country of Incorporation Percentage of ownership
Glenmark Dominicana S.A.
Dominicana Republic
100%
Glenmark Impex LLC
Russia
100%
Glenmark Philippines Inc.
Philippines
100%
Glenmark Farmaceutica Ltda.*
Brazil
100%
Glenmark Organics Ltd.
India
100%
Glenmark Exports Ltd.
India
100%
GM Pharma Ltd
India
100%
Glenmark Pharmaceuticals Inc.*
USA
100%
Glenmark Pharmaceuticals (Europe) Ltd, U.K.
UK
100%
[ Formerly known as Glenmark Pharmaceuticals (UK) Ltd ]
Glenmark Pharmaceuticals Nigeria Ltd.
Nigeria
100%
Glenmark Pharmaceuticals SDN.BHD.
Malaysia
100%
Glenmark Pharmaceuticals S.A.*
Switzerland
100%
Servycal SA*
Argentina
100%
Glenmark South Africa (Properietary) Ltd*
South Africa
100%
[ Formerly known as Glenmark Pharmaceuticals Pty. Ltd. ]
Glenmark Pharmaceuticals South Africa (Properietary) Ltd.*
South Africa
100%
[ Formerly known as Bouwer Bartlett Pty. Ltd.]
Glenmark Pharmaceuticals (Australia) Pty.Ltd.
Australia
100%
Glenmark Holding S.A.
Switzerland
100%
* Held through Glenmark Holding S.A.
(c) Assets and liabilities of foreign subsidiaries are translated into Indian rupees at the rate of exchange prevailing as at the
Balance Sheet date.

Revenues and expenses are translated into Indian rupees at average exchange rates prevailing during the year and the
resulting net translation adjustment has been adjusted to Exchange Fluctuation Reserve in Reserves and Surplus.
(d) The excess of cost of acquisition over GPLs interest in net identifiable assets of the Subsidiary Company is recognized
in the financial statements as Goodwill which is amortised over a period of ten years. The excess of GPLs interest in net
identifiable assets of the Subsidiary Company over the cost of acquisition is treated as Capital Reserve.
(e) These Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and
other events in similar circumstances. However, in case of depreciation it was not practicable to use uniform accounting
policies in case of Glenmark Pharmaceuticals S.A., Glenmark Pharmaceuticals South Africa (Properietary) Ltd., Glenmark
Philippines Inc. & Glenmark Pharmaceuticals Inc. as mentioned below.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful
economic life of the assets, using the straight line method as follows:
Notes To The Consolidated Financial Statements


Glenmark Pharmaceuticals S.A.

Premises - 20%
Vehicles - 40%
Laboratory Instruments and Equipments - 40%
Glenmark Pharmaceuticals South Africa (Properietary) Ltd.
Computer Software - 50%
Glenmark Philippines Inc.
Vehicles - 33%
Equipments - 33%
Furniture and fixtures - 20%
Glenmark Pharmaceuticals Inc.
Leasehold Improvement - 12.5%
Furniture and fixtures - 14%
2)
Rs. In (000s)
Gross Block as on
31st Mar,2007
Percentage of
Total Assets
102,940
1.45%
226
0.00%
8,376
0.12%
44,456
0.63%
SIGNIFICANT ACCOUNTING POLICIES

i) Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis and comply with the
Accounting Standards issued by the Institute of Chartered Accountants of India referred to in Section 211(3C) of the
Companies Act,1956.
ii) Fixed Assets and Depreciation

Fixed assets are stated at cost less accumulated depreciation. The Group capitalises all costs relating to the acquisition
and installation of fixed assets. Expenditure of revenue nature, incurred in setting up of new projects, is capitalised as an
indirect cost towards construction of the fixed assets.

Depreciation is provided using the straight line method, pro-rata to the period of use of assets, based on the useful lives
of fixed assets as estimated by management, or at the rates specified in Schedule XIV of the Companies Act, 1956,
whichever is higher.

Fixed assets having aggregate cost of Rs 5,000 or less are depreciated fully in the year of acquisition.

The Group has estimated the useful life of its assets as follows:

Category
Estimated useful life (in years)

Plant and machinery
8 - 20

Vehicles
5-6

Equipments and air conditioners
4 - 20

Furniture and fixtures
5 - 10

Brands
5 - 10

Leasehold land and improvement is amortised over the period of lease.
iii) Foreign Currency Transactions
(a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions.
Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at
the date of the Balance Sheet. Gain/loss arising on account of differences in foreign exchange rates on settlement/
translation of monetary assets and liabilities are recognised in the Profit and Loss Account. Non-monetary foreign
currency items are carried at cost.
(b) Gain/loss on account of foreign exchange fluctuation in respect of liabilities in foreign currencies specific to
acquisition of fixed assets are adjusted to the carrying cost of the respective fixed assets. Such adjustments
are restricted to only acquisition of fixed assets from a country outside India in case related foreign currency
transactions are entered into on or after April 1, 2004.
39

40
iv) Investments

Long term investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than
temporary, in the value of the investments.
v) Inventories

Inventories of finished goods are valued at cost or net realisable value, whichever is lower. Cost of raw materials and
packing materials is ascertained on a first-in-first out basis. Cost of work-in-process and finished goods include the cost
of materials consumed, labour and manufacturing overheads. Excise and customs duty accrued on production or import of
goods, as applicable, is included in the valuation of inventories.
vi) Employee Benefits

Retirement benefits to employees comprise payments towards gratuity, superannuation and provident fund under the
schemes of the Group and encashment of leave. Annual contributions to the superannuation and provident funds are
charged to the Profit and Loss Account.

Annual contributions for Leave encashment and Gratuity are determined in accordance with the relevant fund/scheme and
are charged to the Profit and Loss Account.
vii) Revenue Recognition

The Group recognizes revenue on dispatch of goods to customers. Revenues from services are recognized on completion of
such services. Revenue from IP asset/Marketing rights is recognized on transfer of ownership/right to use in accordance
with the terms of relevant agreements. Revenue from contract research being in the nature of product development
activities is recognized as per the terms of the agreement. Revenues are recorded at invoice value, inclusive of excise duty
and sales-tax, but net of returns and trade discounts.
viii) Research and Development

Capital expenditure on Research and Development (R&D) is capitalised as fixed assets. Development cost relating to the new
and improved product and/or process development is recognised as an intangible asset to the extent that it is expected that
such asset will generate future economical benefits. Other research and development costs are expensed as incurred.
ix) Income tax

Current Tax

Provision for Current Tax has been made in accordance with the Income Tax and Wealth Tax Laws prevailing for the
relevant assessment years.

Deferred Tax

Deferred income taxes are recognised for the future tax consequences attributable to timing differences between the
financial statement determination of income and their recognition for tax purposes. The effect on deferred tax assets and
liabilities because of a change in tax rates is recognised in the Statement of Profit and Loss using the tax rates and tax
laws that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such deferred tax assets can be realised.

Fringe Benefit Tax

Provision for Fringe Benefit Tax has been made in accordance with the Income Tax Laws prevailing for the relevant
assessment years.
x) Leases

Finance Leases

Assets acquired under finance lease are recognised as assets with corresponding liabilities in the balance sheet at the
inception of the lease at amounts equal to lower of the fair value of the leased asset or at the present value of the
minimum lease payments. These leased assets are depreciated in line with the Groups policy on depreciation of fixed
assets. The interest is allocated to periods during the lease term so as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period.

Operating Leases

Lease payments for operating leases are recognised as expense on a straight-line basis over the lease term. Lease
income from operating leases is recognised as income on a straight-line basis over the lease term. Initial direct costs are
recognised immediately as an expense.


xi) Miscellaneous Expenditure

Preliminary expenses/Pre-operative expenses incurred prior to April 01, 2004 are amortised over the originating period of
five years.
xii) Borrowing Costs

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalised as a part of
the cost of the asset.

Other borrowing costs are recognised as an expense in the year in which they are incurred.
xiii) Impairment of Assets

The Group assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such
indication exist, the Group estimates the recoverable amount of the asset. If such recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset belongs is less than its carring amount, the carrying
amount is reduced to its recoverable amount.The reduction is treated as an impairment loss and is recognised in the profit
and loss account. If at the balance sheet date there is an indication that previously assessed impairment loss no longer
exist, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
xiv) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities
on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognized in the periods in which the results are known/materialize.
xv) Provisions and Contingent Liabilities

The Group recognises a provision when there is a present obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources
is remote, no provision or disclosure is made.
Rs. In (000s)
3
(a)
4)

CONTINGENT LIABILITIES NOT PROVIDED FOR
2007
2006
Bank guarantees
Disputed taxes/duties (Refer Note - (i))
Labour/Industrial disputes
Open letters of credit (Refer Note (ii))
Sundry debtors factored with recourse option (Refer Note (iii))
Channel financing with recourse option (Refer Note (iii))
Indemnity Bond
8,975
49,395
632
21,358
300,000
18,732
34,878
29,217
26,020
343
4,690
100,000
20,500
21,789
Note
(i) In respect of Income-tax demand for the assessment years 1999-00, 2001-02, 2004-05 and 2006-07 aggregating
Rs.23,129 (000) on account of disallowances/ non allowability of deduction under the Income-tax Act made by the
authorities which is appealed against.
(ii) The total amount related to LC outstanding as on 31st March, 2007.
(iii) The amount related to Credit facilities given by Bank against debtors.
(b) Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for as at March
31, 2007 aggregate Rs.52,323 (2006 -- Rs.54,124)
EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders (net profit for
the year less dividends on preference shares) by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the weighted average number of shares outstanding are adjusted for the
effects of all dilutive potential equity shares from the exercise of options on unissued share capital and on Conversion of FCC Bonds. 41


The calculations of earnings per share (basic and diluted) are based on the earnings and number of shares as computed below.
Rs. In (000s)
Reconciliation of earnings
Profit after tax for the financial year
Less:
Preference dividends
Dividend tax on preference shares
Net profit attributable to equity shareholders for calculation of Basic EPS
Reconciliation of number of shares
Weighted average number of shares:
For basic earnings per share
Add:
Deemed exercise of options on unissued equity share capital
Conversion of FCC Bonds
For diluted earnings per share
Earnings per share (nominal value Rs 2 each)
Basic
Diluted
5)

India
Other than India*
Total
6)
42
3,100,600
879,760
6,942
974
3,092,684
Shares
In (000s)
119,058
14,000
1,964
863,796
Shares
In (000s)
118,666
879
13,842
133,779
Rs
25.98
23.12
1,133
15,007
134,806
Rs
7.28
6.41
2007
2006
4,988,060
7,527,276
12,515,336
4,427,964
3,147,928
7,575,892
Assets and additions to fixed assets by geographical area The following table shows the carrying amount of segment assets
and additions to fixed assets by geographical area in which the assets are located:
Rs. In (000s)
India
2007

2006
SEGMENT INFORMATION
Business segments
The Group is primarily engaged in a single segment business of manufacturing and marketing of pharmaceutical formulations and
active pharmaceutical ingredients and is governed by a similar set of risks and returns.
Geographical segments
In the view of the management, the Indian and export markets represent geographical segments.
Sales by market -- The following is the distribution of the Groups sale by geographical market:
Rs. In (000s)
Geographical segment
2007
Others*
2007
India
2006
Others*
2006
Carrying amount of segment assets

9,923,447
9,422,406
7,477,846
5,362,104
Additions to tangible assets
545,196
188,695
683,064
202,367
* Others represent receivables from debtors located outside India including those related to deemed exports and cash and bank
balances of branches outside India.
RELATED PARTY DISCLOSURES
a) Related party relationships where transactions have taken place during the year
Key management personnel

Mr. Gracias Saldanha
Mrs. Cheryl Pinto

Mrs. B.E. Saldanha
Mr. R.V. Desai

Mr. Glenn Saldanha
Mr. A.S. Mohanty


Rs. In (000s)
b)
7)
Transactions with related parties during the year
Managerial Remuneration
2007
2006
Name of Directors
1. Mr. Gracias Saldanha
2. Mrs. B. E. Saldanha
3. Mr. Glenn Saldanha
4. Mrs. Cheryl Pinto
5. Other Directors
17,816
50
34,798
9,522
11,398
9,220
10,386
10,999
4,897
7,586
LEASES
a) The Group has entered into operating and finance lease agreements for the rental of property, vehicles, computers,
equipment and other assets. Typically, lease agreements are for a period of three to fifteen years.

At March31,2007, the Group had commitments under non-cancellable finance leases as follows:
Rs. In (000s)
As at 31st March,
Minimum lease payments
Due within one year
Due later than one year and not later than five years
Due later than five years
Total
Present value of minimum lease payments
Due within one year
Total
b)
2007
2006
8,134
26,218
29,429
63,781
5,098
14,447
19,545
7,710
22,124
17,528
47,362
4,833
12,000
16,833
Glenmark Pharmaceuticals Inc., U.S.A. (GPI) conducts its operations from facilities that are leased under a 97-month noncancellable operating lease expiring in September 2013. Additional office space were subleased under a
52-month non-cancellable operating lease expiring in September 2008 and four year non-cancellable operating lease which
has expired in March 2007.
Rs. In (000s)
As at 31st March,
Minimum lease payments
Due within one year
Total
Present value of minimum lease payments
Due within one year
Total
2007
2006
19,387
60,448
7,251
87,086
18,464
51,188
5,411
75,063
Rs. In (000s)
As at 31st March,
2007
Total of future minimum sublease payments expected to be received
5,641
2006
43


c)
GPL had leased out its manufacturing facility at Panoli, Gujarat till 30th June, 2005 and the same has been capitalised
in the books of account in accordance with Accounting Standard 19 - Leases issued by The Institute of Chartered
Accountants of India in this regard. Depreciation has been provided based on the estimated useful life of the asset.
(i)
Details in respect of assets given on operating Lease
Rs. In (000s)
As at 31st March,
2007
Gross Block
Leasehold Land
Factory Buildings
Plant and Machinery
Equipments
Accumulated depreciation
Leasehold Land
Factory Buildings
Plant and Machinery
Equipments
8)
2006
4,259
22,065
5,838
3,764
165
36,091
226
4,223
1,451
1,634
87
7,621
330
Depreciation [Upto June 2005 ]

(ii) The lease income of Rs.Nil (2006 -- Rs. 480) has been accrued on the basis of the lease agreement executed with

the lessees.
d) The Group has taken on lease/leave and licence godowns/residential & office premises at various locations.
i) The Groups significant leasing arrangements are in respect of the above godowns & premises (Including furniture
and fittings therein, as applicable ). The aggregate lease rentals payable are charged to Profit and Loss Account as
Rent in Schedule 18 & 19.
ii) The Leasing arrangements which are cancellable range between 11 months and 5 years. They are usually renewable by mutual consent on mutually agreeable terms. Under these arrangements, generally refundable interest free
deposits have been given. An amount of Rs.32,611 (2006 - Rs.30,272) towards deposit and unadjusted advance rent
is recoverable from the lessor.
PRIOR YEAR COMPARATIVES
Prior years figures have been regrouped wherever necessary.

Signatures to the Schedules 1 to 22 which form an integral part of the Consolidated Financial Statements.
Price Waterhouse
Partha Ghosh
Partner
44
Glenn Saldanha
Rajesh Desai
Director - Finance
Sanjay Chowdhary
Profiles of the Directors

Mr. Gracias Saldanha (Chairman)
Mr. Julio F. Ribeiro (Non-Executive Director)
Mr. Gracias Saldhana, 70, is the founder of the company. He

has over 36 years experience in the industry. His educational
qualifications includes an M.Sc. from Bombay University with a
Diploma in Management Studies from Jamnalal Bajaj Institute
of Management Studies, Mumbai. He has worked with leading
pharmaceutical companies like Abbott Laboratories and E.Merck.
Mr. Julio F. Ribeiro, 78, is a retired government official and has

served the country under various assignments. Amongst the
major positions held, he has been the Ex-commissioner of Police,
Mumbai, Former Special Secretary to Government of India,
Ministry of Home Affairs, former Director General of Police,
Punjab, Ex-Adviser to the Governor of Punjab, Ex-Ambassador of
India to Romania and is currently a Director in VVF Ltd.
Mr. Glenn Saldanha (Managing Director & CEO)

Mr. Glenn Saldanha, 37, is a B.Pharma from Bombay University
and was awarded the Watumall Foundation Award for overall
excellence. His other educational qualifications include an
MBA from New York Universitys Leonard N. Stern School of
Business (US). He has worked for Eli Lilly in the US and was a
Management Consultant with Price Waterhouse Coopers. His
Services have been used by Smithkline Beecham, Rhorer, Astra,
Merck and Johnson and Johnson, among others.
Mr. Natvarlal B. Desai (Non-Executive Director)

Mr. Natvarlal B. Desai, 80, is a retired General Manager
of Bank of Baroda. He has over 45 years experience in the
Banking Sector. He has worked in India and overseas. He was
Chairman of Bank of Baroda Uganda Ltd. He was the founder
and Managing Director of Equitorial Bank PLC, UK from which he
retired in 1992.
Mrs. Cheryl Pinto (Director Corporate Affairs)

Mr. A. S. Mohanty (DirectorFormulations)
Mr. A. S. Mohanty, 53, who is an M.Sc., is in-charge of
Formulations business. He has over 29 years experience in
pharmaceutical sales and marketing as well as healthcare
sectors.
Mr. R. V. Desai (Director Finance/Legal)

Mr. R. V. Desai, 49, is a Science Graduate and a Chartered
Accountant. He is in-charge of Finance/Legal and he has over 24
years experience in the industry.
Mrs. B. E. Saldanha (Non-Executive Director)

Mrs. B. E. Saldanha, 67, has graduated in B.Sc., B.Ed. from
Bombay University and was a Wholetime Director of the
Company from 1982 to 2005. She was responsible to a large
extent in developing the Companys export business.
Mrs. Cheryl Pinto, 40, is a graduate in Pharmacy from the

University of Bombay. She has over 19 years experience in the
pharmaceuticals business.
Mr. M. Gopal Krishnan (Non-Executive Director)

Mr. M. Gopal Krishnan, 71, worked with Bank of India for over
25 years, most of which were spent overseas in Kenya and UK.
Thereafter, he worked with Equitorial Bank PLC, UK as Founder
Director until he retired.
Mr. Sridhar Gorthi (Non-Executive Director)

Mr. Sridhar Gorthi, 35 is a B.A., LL.B., (Hons.) from the National
Law School of India University. Mr. Sridhar Gorthi is presently
a partner in Trilegal and has worked with Arthur Anderson and
Lex Inde, Mumbai. He was involved in legal advisory services to
various multinational and domestic corporations on restructuring,
debt finance, joint ventures, acquisition/ mergers etc.
45
Directors Report
Your Directors have pleasure in presenting their 29th Annual Report and Audited Accounts of the Company for the year ended March
31, 2007.
FINANCIAL RESULTS
Rs. in million
Standalone
2006-2007 2005-2006
Profit before Interest, Depreciation & Tax
Less: Interest
Less: Depreciation
Less: Tax(Current Year & Deferred Tax)
Profit after Tax
Surplus brought forward from earlier years
Profit available for appropriations
Consolidated
2006-2007 2005-2006
2172.23
229.49
234.58
360.12
1348.04
1456.40
2804.44
1086.02
58.16
174.85
179.97
673.04
964.08
1637.12
4419.85
384.08
422.59
512.58
3100.60
2035.29
5135.89
1500.26
147.20
232.34
240.96
879.76
1401.37
2281.13
6.94
95.76
14.40
200.00
140.00
2347.34
2804.44
14.00
83.11
13.62
NIL
70.00
1456.40
1637.12
6.94
95.76
14.40
200.00
140.00
4678.79
5135.89
14.00
83.11
13.62
NIL
135.11
2035.29
2281.13
APPROPRIATIONS
Interim Dividend on Preference Shares
Dividend Tax
Transfer to General Reserves
Balance carried to Balance Sheet
DIVIDEND
PROFITS
Your Company has paid interim dividend @ 40% (35%) on the

paid-up Equity Share Capital of the Company and @ 7%(7%)
on the paid up Preference Share Capital(till 29th September
2006) of the Company. The total outflow on account of
Dividend inclusive of Dividend Tax, is Rs. 117.10 million (Rs.
110.73million). Your Directors recommend that the interim
dividend already paid be confirmed as final dividend for the year
ended 31st March 2007.
The Consolidated operating profit before interest, depreciation

and tax increased to Rs.4419.85 from Rs.1500.26, an increase
of 195% over the previous year. The Standalone operating profit
before interest, depreciation & tax increased to Rs. 2172.23
million from Rs. 1086.02 million, an increase of 100% over the
previous year.
CONSOLIDATED ACCOUNTS
Domestic Marketing:
In accordance with the requirements of Accounting Standard AS21 prescribed by the Institute of Chartered Accountants of India,
the Consolidated Accounts for the year ended 31st March, 2007,
under Indian GAAP forms part of the Annual Report.
Domestic sales at Rs. 4289.72 million (Rs. 3936.80 million)

registered an increase of 9% over the previous year. Your
Company launched several new products and line extensions
across its eight retail divisions to strengthen its portfolio during
the year.
RESULTS OF OPERATIONS
46
Your Directors are pleased to report excellent performance for

the year under review. The Company achieved consolidated Gross
revenue of Rs.12515.34 million (Rs.7575.89 million) registering
a growth of 65.20% over the previous year .On standalone basis
the company achieved a gross revenue of Rs.8371.18 million
(Rs. 6184.36 million), registering an increase of 35.36% over the
previous year. The growth is mainly attributed to the entry into
new markets, addition of new products/extension of product in
the existing markets.
OPERATIONS:
FORMULATION BUSINESS
The Company registered a value growth of 20.9%, vis--vis that

of the industry (14.3%) {ORG MAT March07}
USA/North America:
Glenmark Pharmaceuticals Inc., U.S.A., the US subsidiary
completed its second year post the launch of its commercial sales
front end for the US market and posted revenues of Rs.2207.52
million(Rs.571.91 million) registering an increase of 286% over
the previous year.
Glenmark has now 19 products in the US market.
Latin America :
Glenmark from its Latin American operations, comprising
Glenmark Farmaceutica Ltda.(Brazil), Servycal (S.A.), (Argentina)
and other Latin American Markets, posted revenues of
Rs.1420.65 million (Rs.764.39 million) registering an increase of
86% over the previous year.
Semi Regulated Market:

Glenmarks revenue from the semi regulated markets was
Rs.1883.97 million (Rs.1056.17 million) registering an increase
of 78% over the previous year.
This year the company has commenced operations in nine
new countries and now markets its products in more than 85
countries globally.
Europe :
Forest laboratories inc., and Teijin Pharma Ltd.,) and GRC 8200
(development partner Merck KGaA) continue to progress well in
their Phase II clinical trials.
Glenmarks molecule GRC - 6211 has entered into phase II
clinical trials and other molecules (GRC-10801, GRC 10693
& GRC 4039) are satisfactorily progressing in pre-clinical and
clinical stages.
Glenmark Pharmaceuticals S.A., the Swiss subsidiary and Dyax
Corp. entered into a funded research agreement for the discovery
of therapeutic antibodies in March 2007.
CHANGES IN CAPITAL STRUCTURE

Issue of shares on exercise of Employees Stock
Options :
The Company has filed for registration of three products in

Europe and has also concluded a couple of Pan European
partnerships for these products.
During the year, the Company allotted 172,940 Equity Shares

of Rs.2/- each (on pari-passu basis) pursuant to exercise of
Stock Options by the eligible employees of the Company and its
subsidiaries.
Manufacturing:
Issue of shares on Part Conversion of FCCBs:
During the year, Glenmarks new manufacturing facility at Baddi

became fully operational. In addition, the plant was upgraded
with a lotion line and an additional ointment line during the year.
The production achieved from the facility was satisfactory.
During the year ended 31st March, 2007, the Company received
notices from Foreign Currency Convertible Bond(FCCB) holders
for exercising the conversion option in respect of 11,500 FCCBs
of US$1000 each out of 100,000 FCCBs of US$ 1000 each
issued by the Company. Accordingly, the Company allotted
11,64,408 Equity shares of Rs.2 each in respect of the said
11,500 FCCBs to the bondholders who exercised their option.
The Company also commissioned oncology solid dosage products

manufacturing facility in Kundiam, Goa. The oral dosage facility
of the Companys manufacturing plant for regulated markets in
Colvale, Goa was expanded in line with US FDA guidelines and
GMP requirements.
ACTIVE PHARMACEUTICAL INGREDIENTS (API)

Revenues from the API and co-marketing business amounted to
Rs.1318.36 million (Rs.980.99 million) registering an increase of
34 % over the previous year.
Domestic:
Revenues from the domestic API and co-marketing business
amounted to Rs. 640.78 million (Rs.491.16 million) recording an
increase of 30.46 % over the previous year.
International:
Revenue from sales of API to regulated and semi-regulated
markets globally were Rs.677.58 Million (Rs. 489.83 Million)
registering an increase of 38.32 % over the previous year.
Manufacturing:
Redemption of Preference Shares:

The 7% 20,00,000 Redeemable Cumulative Non-Convertible
Preference shares of Rs.100/- each issued to IDBI and due for
redemption were redeemed at face value during the year.
EMPLOYEE STOCK OPTION SCHEME

During the year, Stock Options have been issued to the
employees of the Company. On exercising the convertible options
so granted, the paid-up equity share capital of the company will
increase by a like number of shares.
The details of stock options granted by the Company are
disclosed in compliance with clause 12 of the Securities
Exchange Board of India (Employee Stock Options Scheme and
Employee Stock Purchase Scheme), 1999 and set out in the
Annexure to this Report.
SPLIT/SUB-DIVISION OF SHARES
The API facility in Ankleshwar received approval from MHRA

(the UK regulatory authority). The Ankleshwar facility has been
upgraded to increase capacity to meet growing demands.
The Shareholders have accorded their approval for splitting the

face value of the equity shares from Rs.2 per share to Re.1/- per
share. The record date/book closure date for the same has been
fixed as 17th September, 2007 to 20th September, 2007.
The Company filed 11 USDMFs, 3 canadian DMFs, 8 EDMFs

(European DMFs) and 5 CEPs(Certificate of European
Pharmacopoeia) during the year.
LISTING AT STOCK EXCHANGES
RESEARCH AND DEVELOPMENT

Glenmarks lead molecules, Oglemilast (development partners-
The Equity shares of the Company continue to be listed on

Bombay Stock Exchange Ltd. and The National Stock Exchange
of India Ltd. Foreign Currency Convertible Bonds are listed on the 47
Singapore Stock Exchange.
SUBSIDIARY COMPANIES
During the year, your Company has incorporated Glenmark
Holding S.A.(GHSA), a wholly owned subsidiary in Switzerland.
Pursuant to this, Glenmark Pharmaceuticals S.A,(GPSA)
Switzerland, the erstwhile wholly owned subsidiary of the
company has become a subsidiary of GHSA and the subsidiaries
of GPSA have been made the subsidiaries of GHSA. During
the year, the names of Glenmark Pharmaceuticals (Pty.) Ltd.
and Bouwer Bartlett (Pty.) Ltd. was changed to Glenmark
South Africa (Pty.) Ltd. and Glenmark Pharmaceuticals South
Africa (Pty.) Ltd. respectively and the name of Glenmark
Pharmaceuticals(U.K.) ltd. was changed to Glenmark
Pharmaceuticals(Europe) Ltd..
The company acquired a majority shareholding of Medicamenta
a.s., a manufacturing and marketing company in Czech Republic
through GHSA in April2007.
Pursuant to the provision of Section 212 (8) of the Companies
Act, 1956, the Company has obtained exemption from
Department of Company Affairs, New Delhi, vide its letter No.
47/74/2007-CL-III dated 26/03/2007 to attach Audited Accounts
of its subsidiaries together with Directors Report and Auditors
Report. The Audited Accounts of the subsidiaries together with
its Directors Report and Auditors Report are available for
inspection of members on any working day at the Corporate
Office of the Company between 10 am to 12 noon.
DIRECTORS
Mrs. Cheryl Pinto, Mr. J.F.Ribeiro and Mr. S. Gorthi retire by
rotation at the ensuing Annual General Meeting and being eligible,
offer themselves for re-appointment.
CORPORATE GOVERNANCE
Report on the Corporate Governance forms an integral part
of this Report.The Certificate of the Practicing Company
Secretary certifying compliance with the conditions of Corporate
Governance as stipulated in clause 49 of the Listing Agreement
with Stock Exchanges is annexed with the report on Corporate
Governance.
MANAGEMENT DISCUSSION AND ANALYSIS

REPORT
The management discussion and analysis report on the
operations of the company, as required under the Listing
agreements with the stock exchanges is provided in a separate
section and forms a part of this report.
AUDITORS
M/s Price Waterhouse, Chartered Accountants, Auditors of the
Company, retire at the conclusion of the ensuing Annual General
Meeting and being eligible, offer themselves for re-appointment.
whereas on standalone basis, due to Commercial negotiations

& legal compliances, the long term borrowing programme of the
Company was delayed thereby resulting into utilisation of short
term funds for financing long term investments to the tune of
Rs.45.11 Crores.
HUMAN RESOURCES
Companys industrial relations continued to be harmonious during
the year under review.
PARTICULARS OF EMPLOYEES
Particulars of employees required to be furnished under Section
217(2A) of the Companies Act, 1956 forms part of this report.
However as per the provisions of Section 219(1)(b)(iv) of the Act,
the report and accounts are being sent to the shareholders of the
Company excluding the particulars of employees under Section
217(2A) of the Act. Any shareholder interested in obtaining a
copy of the said statement may write to the Company Secretary
at the Corporate Office of the Company.
DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 1956, the
directors confirm that
(i)
in the preparation of the annual accounts, the applicable

accounting standards have been followed along with proper
explanation relating to material departures, if any;
(ii) appropriate accounting policies have been selected

and applied consistently and have made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company as
at 31st March, 2007 and of the profit of the Company for
the year ended 31st March, 2007;
(iii) proper and sufficient care has been taken for maintenance
of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding
the assets of the Company and for preventing and
detecting fraud and other irregularities;
(iv) the annual accounts have been prepared on a going concern
basis.
APPRECIATION
Your Directors express their gratitude to the Companys
customers, shareholders, business partners viz. distributors
and suppliers, medical profession, companys bankers, financial
institutions including investors for their valuable sustainable
support and co-operation.
Your Directors commend the continuing committment and
dedication of employees at all levels.
FINANCE
48
On consolidated basis, the Secured loans of the Company

increased to Rs.1749.31 million during the year as compared to
Rs.1471.28 million in the previous year and the unsecured loans
(excluding FCCBs) of the Company increased to Rs.3766.24
million as compared to Rs.1444.75 million in the previous year,
G. Saldanha
Chairman
Mumbai
Date: 13th August, 2007
Annexures to the Directors Report

Annexure-A
Information under section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 and forming part of the Directors Report.
A. Conservation of Energy
Energy Generation Measures taken
A. Power and Fuel Consumption
1.
(a)
(b)
2.
3.
4.
Electricity
Purchased
Unit(in 000 Kwhrs)
Total Amount (Rs. in 000s)
Rate/Unit (Rs.)
Own Generation
(i) Through Diesel Generator
Unit (in 000 Kwhrs)
Units per Ltr. of Diesel Oil
Cost/Unit (Rs )
(ii) Through Steam Turbine/Generator.
Coal
Qty.
Total Cost
Avg. Rate
Furnace Oil / Light Diesel Oil
Qty. (K. Ltr.)
Total Amount (Rs. in 000s)
Avg. Rate (Rs. /K. Ltr.)
i. Internal generation
Light Diesel Oil
Qty. (In Ltr. 000s)
Total Cost (Rs. in 000s)
Rate/Unit (Rs.)
ii. Natural Gas
Qty. (M3 000s)
Total Cost (Rs. in 000s)
Rate/Unit (Rs.)
2006-2007
2005-2006
15,761.92
70,265.26
4.46
11934.96
51382.41
4.31
610.33
3.63
9.61
NIL
NIL
1807.28
3.63
8.53
NIL
NIL
536.367
16,177.72
30.16
111.73
2652.26
23.74
53.389
1,881.962
35.25
158.25
4070.78
25.75
1,414.93
14,716.24
10.40
1794.88
16079.26
8.95
B. Consumption
The Company manufactures several Drug Formulations in different pack sizes. In view of this, it is impracticable to apportion
the consumption and cost of utilities to each Product/Formulation.
B. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT (R&D)

1. Specific areas in which R & D is carried out by the Company & its subsidiaries and benefits
derived as a result of the same.
Formulation Development:
a) Pharmaceutical Formulation Development: Formulation of various pharmaceutical dosage forms and processes for
new & existing molecules. Development of formulations as immediate release, delayed release, enteric release, sustained release and various platform technologies. This includes literature survey, preformulation studies, formulation
and standardization of dosage forms for selected drug molecules on laboratory scale.
49

R & D has developed the new formulations for new & existing molecules & drug combinations. Developed
technology is transferred to commercial production for following products;
Glenmark
Gracewell
Healtheon
Milieus
Majesta
Integrace
Zoltan
Onkos
Progesterone Gel
8 % w/w (Dubagest Gel 8%)
Idebenone Cream
1 % w/w (Revize)
Glimepiride
plus Metformin
Hydrochloride
SR Tablets (1
mg + 1000 mg)
(Glimulin MF)
Miconazole
Nitrate, Neomycin Sulphate
& Clobetasol
Propionate
Cream (Micogram
Cream)
Erdosteine for
Oral Suspension
(Erdozet Suspension)
Dexibuprofen and
Paracetamol Soft
Gelatin Capsules
(300 mg + 500
mg) (Sibet P)
Nebivolol plus
Amlodipine
Tablets (5 mg +
5 mg) (Nebinex
AM)
Docetaxel
Injection 20 mg
(Taxuba 20)
Ferrous Fumarate, Folic Acid

& Vitamin B 12
Tablets (300 mg
+ 1.5 mg + 15
mcg) (Mumfer F)
Halobetasol Propionate Cream 0.05

% w/w (Halovate
Cream)
Glimepiride
plus Metformin
Hydrochloride
SR Tablets (2
mg + 1000 mg)
(Glimulin 2 MF
Forte)
Azithromycin Dispersible Tablets

100 mg (Azifine
100 DT)
Levofloxacin Eye
& Ear Drops 0.5
% w/v (Glevo Eye/
Ear Drops)
Phenylephrine
HCl, Chlorpheniramine Maleate
& Paracetamol
Drops (Alex P
Paediatric Drops)
Telmisartan
plus Amlodipine
Tablets (40 mg
+ 5 mg) (Telma
AM)
Docetaxel
Injection 80 mg
(Taxuba 80)
Cefpodoxime
Proxetil Dispersible Tablets 100
mg (Kefpod DT)
Rosuvastatin plus
Ezetimibe Tablets
(10 mg + 10 mg)
(Razel EZ)
Aprepitant
Capsules 80
mg & 125 mg
(Aprecap)
Halobetasol
Propionate
Ointment 0.05 %
w/w (Halovate
Ointment)
Cefixime Dispersible Tablets 50

mg (Milixim 50
DT)
Imatinib Tablets
100 mg (Mitinab
100)
Imatinib Tablets
200 mg (Mitinab
200)
Epirubicin Hydrochloride Injection
10 mg (Eithra 10)
Epirubicin
Hydrochloride
Injection 50 mg
(Epithra 50)
The products launched and sold in the domestic and exports markets would earn revenues for your Company. The IPR generated
can lead to profitable licensing opportunities.
b) Formulation Development for Brazil Market: It includes- Development of various types of dosage forms, its standardization
and execution at production site, evaluation of these batches against Brazil reference samples for pharmaceutical and bioequivalence.
c) Formulation Development for Europe Market: It includes- Development of various types of dosage forms, its
standardization and execution at production site, evaluation of these batches against reference samples for pharmaceutical
and bio-equivalence.
d) Development of ANDA for the US markets: Your Company has filed 11 ANDAs on its own label during this financial year.
The Company has over 35 ANDAs undergoing USFDA approval process/launch.
PROCESS DEVELOPMENT:
Development of technology based products like Aprepitant Capsules combination pack containing Aprepitant Capsules 80 mg & 125
mg, Dispersible Tablets like Cefixime, Cefpodoxime Proxetil & Azithromycin, Eye / Ear drops preparation of Levofloxacin, anti diabetic
combination product like Glimepiride plus Metformin Hydrochloride SR Tablets, Progesterone Gel etc.
DRUG DISCOVERY:
Exploration of further pharmacological targets and advancement of candidates molecules in the areas of inflammation, diabetes, pain
and obesity has been continued. Sixteen patents in all with provisional specifications and seven patents with complete specifications
have been filed across all our NCE programs. Key highlights of the drug discovery programs include:
GRC 8200 (Therapeutic Area: Diabetes; Licensed to Merck KgaA) has been out-licensed to Merck KGaA and API manufacturing
activities are ongoing to supply continued non-clinical studies at Merck KGaA in support of planned clinical studies
GRC 3886 (Therapeutic Area: Asthma; Licensed to Forest Labs) has been out-licensed to Forest Labs and the program continues
to progress at their end through advanced non-clinical studies in preparation for Ph2 clinical studies.
50
GRC 6211 (Therapeutic Area: Pain) has progressed through Ph1 clinical study and non-clinical activities to support planned Ph2
studies (in India; Submissions madeto DCGI) are underway.
GRC 4039 (Therapeutic Area: Inflammation) has progressed through the pre-clinical studies and is poised for Ph1 studies through
the second half of the year.
CB-1 Program (Therapeutic Area: Obesity)
Several potential lead molecules are
CB-2 Program (Therapeutic Area: Pain)
being evaluated for optimisation
SCD-1 Program (Therapeutic Area: Obesity)
prior to pre-clinical development
MIF Program (Therapeutic Area: Inflammation)
Analytical Method Development:

a) Development of new analytical test processes and their evaluation for dosage forms. This includes stability indicating methods,
validation and standardisation of analytical processes. Accelerated and time lapse stability studies of Research and Development
formulations under various climatic conditions.
b) Development of technology based patentable platform technology. Filing of patents in the US and PCT for various dosage form
including oral controlled release and topical products.
Packaging Material Development:

Development of packaging forms and their improvements for new (Blister Combination Pack Containing Aprepitant capsules 80 mg &
125 mg, Progestrone Gel with single dose applicator) as well as existing products.
Technology Transfer:
As per the technology transfer protocols for various formulation, scale up for production / commercial batches. Monitoring of first
three to five commercial batches.
2. Future plan of action

R & D is working on new molecules in the following segment;

- Oncology Products
-
Antifungal molecules
- Antibacterial molecules
- Antiasthmatic molecules
- Antidiabetic products
- Antiaging products
- Antiinflammatory products
- Atihyperlipidemic products
- Antiosteoporosis products
- Antiemetic products
- Sunscreens Products
- Protein Supplement Products
- Technology such as microspheres & aerosols foam Mousse.
- Technology to replace solvents used in film coating by water.
- Development of formulations for Semi regulatory market.
- Development of formulations for Latin American market.
- Development of formulations for US market.
- Antihypertensive molecules
Your Company is targeting development and technology transfer and ANDA filing for 12-15 products for the coming year. These
products will be transferred to the Goa and Baddi plant.
3. Expenditure on R&D:

a)
b)
c)
d)
Capital Expenditure
Revenue Expenditure
Total
R & D Expenditure as a percentage of total turnover
(Rs. in Million)
2006-07
2005-06
81.09
432.64
513.73
6.09%
136.74
330.17
466.91
7.49%
51
TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION:

1.

2.

3.
Efforts in brief towards technology absorption, adoption and innovation.

Most of our efforts in the area of technology absorption, adoption and innovation are based on our own efforts in R & D. They
include improvement in yield and quality, improvement of processes and development of new processes with validation studies.
Benefits derived :
Benefits derived are enhanced production of our products, improvement in the yield and quality of products and introduction of
new products, cost reduction of products and processes without affecting the quality of the products and process efficacy.
Our R&D Centre is recognised by D.S.I.R., Ministry of Science and Technology, Government of India.
Information regarding technology imported during the last five years Nil.
A. FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned was Rs.3191.42 million and outflow was Rs. 382.03 million.
G.Saldanha
Chairman
Mumbai
13th August, 2007
52
Annexure-B
Disclosure pursuant to the provisions of Securities and Exchange Board of India (Employee Stock Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999.
Glenmark Employees Stock Option Scheme 2003
Particulars
Options outstanding as at the beginning of the year
a
Options granted during the year
b
Pricing Formula
c
d
e
f
g
h
i
Options Vested**
Options Exercised**
Total no. of shares arising as result of exercise of
Options
Options lapsed *
Variation in terms of Options
Money realised by exerise of Options (in lakhs)
Total number of options in force**
** The number of options have been reported as on
31.03.2007
* Lapsed Options includes options cancelled/lapsed.
Employee wise details of options granted to:
- Senior Management
- any other employee who receives a grant in any one

year of option amounting to 5% or more of option
granted during that year
- employees who were granted option, during any one
year, equal to or exceeding 1% of the issued capital
(excluding warrants and conversions) of the company at
the time of grant
Till the year ended 31st March

2006
1,470,900
For the Year 2006 - 2007
Exercise Price shall be the latest

available closing market price of
the equity shares of the company,
prior to the date of grant
523,735
262,560
262,560
500,500
Exercise Price shall be the latest
available closing market price of
the equity shares of the company,
prior to the date of grant
0
0
0
0
None
126.73
1,208,340
19,500
0
0
481,000
Name of the employee

Mr. Saurabh Srivastava
Mr. Nandlal Agarwal
Mr. Michael Buschle
Mr.Jagdish Jajoo
Mr. Ratish Trehan
Mr. Emilio Jares Furno
Mr. Shekhar P. Singh
Mr. Ajit Nair
Mr. Narendra Shinde
Mr. William Mcintyre
Mr. Kamal Mehta
Mr. Ewan Livesey
Mr. Valdir Barbosa
Mr. Antonio Salgado
Mr. Gary Deeb
Dr. Yaqoob Ali
Mr. Samuel Chi-min Hou
Mr. Achin Gupta
Mr. Vikram Janakiraman
Mr. B.M.Sundaram
Ms. Rajni Jha
Dr. V.S.Verma
Dr. Subhash Pande
No. of options granted

5,000
5,000
25,000
3,500
10,000
10,000
5,000
7,500
7,500
12,500
7,500
10,000
10,000
4,000
7,500
20,000
10,000
9,000
25,000
25,000
5,000
7,500
5,000
None
None
53
k
l
m
(a)
(b)
(c)
(a)
(b)
(c)
n
Diluted earnings per share pursuant to issue of shares on

exercise of option calculated in accordance with AS 20
Earnings per Share
Pro Forma Adjusted Net Income and Earning Per Share
Particulars
Rs. In Lakhs
Net Income
As Reported
13480.43
Add: Intrinsic Value Compensation Cost
0.00
Less: Fair Value Compensation Cost
527.02
Adjusted Pro Forma Net Income
12953.41
Earning Per Share: Basic
As Reported
11.26
Adjusted Pro Forma
10.81
Earning Per Share: Diluted
As Reported
10.02
Adjusted Pro Forma
9.62
Weighted average exercise price of Options granted
during the year whose
Exercise price equals market price
406.91
Exercise price is greater than market price
NA
Exercise price is less than market price
NA
Weighted average fair value of options granted during
the year whose
Exercise price equals market price
223.27
Exercise price is greater than market price
NA
Exercise price is less than market price
NA
Description of method and significant assumptions used The fair value of the options granted has been estimated using the
to estimate the fair value of options
Black-Scholes option pricing Model. Each tranche of vesting have
been considered as a separate grant for the purpose of valuation.
The assumptions used in the estimation of the same has been
detailed below:
Weighted average values for options granted during the year
Variables
Stock Price
417.17
Volatility
48.97%
Riskfree Rate
7.70%
Exercise Price
406.91
Time To Maturity
6.00
Dividend yield
0.96%
223.27
Stock Price: Closing price on NSE as on the date of grant has been considered for valuing the grants.
Volatility: We have considered the historical volatility of the stock till the date of grant to calculate the fair value.
Risk-free rate of return: The risk-free interest rate being considered for the calculation is the interest rate applicable for a maturity
equal to the expected life of the options based on the zero-coupon yield curve for Government Securities.
Exercise Price: The Exercise Price is the latest available closing market price of the equity shares of the company, prior to the date of
grant, for the respective grants.
Time to Maturity: Time to Maturity / Expected Life of options is the period for which the Company expects the options to be live.
The minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the
maximum period after which the options cannot be exercised.
Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the four financial years
preceding the date of the grant.
54
Report
Notes
on Corporate
to the Accounts
Governance
Pursuant to Clause 49 of the Listing Agreement, a Report on Corporate Governance is given below.
1. The Companys philosophy on Code of Governance:

The Companys philosophy on Code of Governance is aimed at assisting the top management of the Company in the efficient
conduct of its business and in meeting its obligations to shareholders. The Company has adopted a codified Corporate
Governance Charter, inter-alia, to fulfill its corporate responsibilities and achieve its financial objectives.
The Company believes in and has consistently practiced good corporate governance. The Company creates an environment for
the efficient conduct of the business and to enable management to meet its obligations to all its stakeholders, including amongst
others, shareholders, customers, employees and the community in which the Company operates.
2. Board of Directors:
A. Composition:

The Board comprises of 10 Directors, of whom, four are executive, and six are non-executive Directors. The Chairman of the
Board is a non-executive Director.

The non-executive Directors are professionals with experience in management, pharmaceutical industry, legal, finance, marketing
and general administration who bring in a wide range of skills and experience to the Board.
a) Details of the Board of Directors:
Name of the Director
Status
Gracias Saldanha -Chairman Non-Executive -Promoter

Group
B .E. Saldanha
Non-Executive - Promoter
Group
Glenn Saldanha
Executive - Promoter Group
Cheryl Pinto
Executive - Promoter Group
J. F. Ribeiro
Non-Executive Independent
R.V .Desai
Executive
A. S. Mohanty
Executive
N.B Desai
M. Gopal Krishnan
Prasanna Gore*
Sridhar Gorthi

B.
C.
No. of
Board
Meetings
attended
No. of other
Directorships held #
Committee
Membership (s)##
Chairman Member
---
--
--
--
6
5
7
5
4
3
4
1
1
-------
-2
-------
-1
1
-2
1
-1
# Includes Directorship(s) in Indian Companies. The Directorships held by Directors as mentioned above, do not include Alternate
Directorships and Directorships of Foreign Companies, Section 25 Companies and Private Limited Companies.
## In accordance with Clause 49 of the Listing Agreement, Membership/Chairmanship of only the Audit Committee and
Shareholders/ Investors Grievance Committee of all Public Limited Companies have been considered.
* Ceased to be a Director with effect from 31st July, 2006.
b) During the Financial Year ended 31st March, 2007 , seven board meetings were held on the following dates:

28th April 2006, 31st July 2006, 19th August 2006, 16th October 2006, 31st October 2006, 26th December 2006,
23rd January 2007.
None of the non-executive Directors of the Company, have any pecuniary relationship or transactions with the Company other
than sitting fees paid for attending board meeting/ committee meetings and those already disclosed in the note 4 of schedule 21
to the Financial Statement in the Annual Report.
Mr.Gracias Saldanha, Mr. Glenn Saldanha, Mrs. Cheryl Pinto, Mr. R. V. Desai, Mr. A. S. Mohanty, Mr. N.B. Desai and Mr. J. F.
Ribeiro attended the last Annual General Meeting of the Company held on 29th September, 2006.
55
3. Audit Committee:
i)
Your Company has a qualified and independent Audit Committee. During the Financial Year ended 31st March , 2007, the
committee met four times on 25th April, 2006, 19th August, 2006, 28th October, 2006 and 22nd January, 2007. The
attendance of the Committee members at the meetings was as follows:-
ii)
Name
J. F. Ribeiro
Prasanna Gore
Sridhar Gorthi
N. B. Desai
M. Gopal Krishnan
No. of meetings attended Remarks

3
Chairman
(ceased to be a member
w.e.f 31st July 2006)
4
Member
4
Member
1
Member
Mr. Glenn Saldanha, Managing Director & CEO, Mr. R. V. Desai, Director-Finance & Legal and Mr. Prakash Sevekari, Cost
Auditor are invitees to the Meeting of the Audit Committee. Mr. M. J. Mendonza, Vice President-Legal and Company Secretary
was the Secretary to the Committee upto 14th December 2006 and thereafter Mr. Sanjay Chowdhary, Asst. Company
Secretary acts as a Secretary to the Committee. The terms of reference of this committee are wide enough covering matters
specified in the Companies Act, 1956 read together with Clause 49 of the Listing Agreement of the Stock Exchange. The current
Charter of the Audit Committee is in line with international best practices and the regulatory changes formulated by SEBI and
the listing agreements with the stock exchanges on which your company is listed.
iii) Terms of Reference:
a) Approving and implementing the audit procedures and techniques.
b) Reviewing audit reports of both statutory and internal auditors with auditors and management.
c) Reviewing financial reporting systems, internal control systems and control procedures.
d) Ensuring compliance with regulatory guidelines.
e) Reviewing the quarterly, half-yearly and annual financial results of the Company before submission to the Board.
4. Remuneration of Directors:
A.
B.
The remuneration of the executive and non-executive Directors of your Company is decided by the Board of Directors on the
terms and conditions as per the recommendation by the Compensation Committee.
Given below are the details of remuneration /fees /commission paid to Directors during the financial year ended 31st March ,
2007:
Name of Director
Gracias Saldanha
B. E. Saldanha
Glenn Saldanha
Cheryl Pinto
J. F. Ribeiro
N. B. Desai
M. Gopal Krishnan
Sridhar Gorthi
Prasanna Gore*
A. S. Mohanty
R. V. Desai
56
Salaries
Retirement
Commission Sitting Fees
TOTAL
benefits/other
reimbursements
Amount (Rs.)
Amount (Rs.)
Amount (Rs.) Amount (Rs.) Amount (Rs.)
--9,726,800
7,860,000
-----5,354,000
3,854,000
26,794,800
--6,140,002
1,662,495
-----499,984
495,570
8,798,051
17,766,276
--------472,224
472,224
18,710,724
50,000
50,000
--75,000
70,000
30,000
75,000
---350,000
17,816,276
50,000
15,866,802
9,522,495
75,000
70,000
30,000
75,000
-6,326,208
4,821,794
54,653,575
Notes:
1. The Executive Directors have been appointed/ reappointed on May 16, 2002 for the term of five years. The service contract can
be terminated with a notice of six months.
2.
Sitting fees of Rs. 75,000 of Mr. Sridhar Gorthi was paid to Trilegal on his behalf.
* Ceased to be a Director with effect from 31st July, 2006.
5. Shareholders/Investors Grievance Committee:

The following Committee reviews shareholders complaints and resolution thereof.
Name of committee
Shareholders and Investors
Grievance Committee.
Members
1) J. F. Ribeiro Chairman
2) Glenn Saldanha Member
3) N. B. Desai - Member
4) R.V. Desai Member
No. of meetings
held
Attendance at the
meeting
15
15
15
15
13
13
12
14
Compliance Officer: Mr. M. J. Mendonza-Vice President-Legal & Company Secretary was the Compliance Officer of the
Company upto 14th December 2006 and thereafter Mr.Sanjay Chowdhary-Asst. Company Secretary acts as the Compliance
officer of the Company.
Details of investors complaints received during the year ended 31st March, 2007:
No. of complaints
Received
Disposed
Pending

2006-2007
2005-2006
31
31
Nil
44
44
Nil
The Companys Registrars, Karvy Computershare Private Ltd, had received letters / complaints during the financial year, all
of which were replied / resolved to the satisfaction of the shareholders.
6. Compensation Committee:
i)
Broad terms of reference of the Compensation Committee:

To recommend and review remuneration package of Executive / Non-Executive Directors.
To approve issue of stock options to the employees.
ii) The Compensation Committee comprises of following members of the Board:

1. J. F. Ribeiro
- Chairman

2. Glenn Saldanha
- Member

3. N. B. Desai
- Member

4. S. Gorthi*
- Member

*Appointed w.e.f 23rd January, 2007
iii) During the year ended 31st March, 2007, nine meetings were held: 25th April, 2006, 27th April, 2006, 22nd May, 2006, 23rd
June, 2006, 2nd August, 2006, 14th August, 2006, 12th October, 2006, 28th February, 2007 and 21st March, 2007.
iv) Compensation Policy:

The Company follows a market linked remuneration policy, which is aimed at enabling the Company to attract and retain the
best talent. Compensation is also linked to individual and team performance as they support the achievement of Corporate Goals.
The Company has formulated an Employee Stock Option Scheme for rewarding & retaining performers.
7. Disclosures by Management :
a)
b)
c)
d)
e)
No material, financial and commercial transactions were reported by the management to the Board, in which the management
had personal interest having a potential conflict with the interest of the company at large.
There are no transactions with the Director or Management, their associates or their relatives etc. that may have potential
conflict with the interest of the Company at large.
There was no non-compliance during the last three years by the Company on any matter related to capital market. Consequently,
there were neither penalties imposed nor strictures passed on the Company by Stock Exchanges, SEBI or any statutory authority.
Though there is no formal Whistle Blower Policy, the Company takes cognizance of the complaints made and suggestions given
by the employees and others. Even anonymous complaints are looked into and whenever necessary, suitable corrective steps are
taken. No employee of the Company has been denied access to the Audit Committee of the Board of Directors of the Company.
The company has fulfilled a non-mandatory requirement as prescribed in Annexure I D to Clause 49 of the Listing Agreement
with the Stock Exchanges, related to Remuneration Committee (Compensation Committee). Please see the para on
57
Compensation Committee.
8. Shareholders information:
a)
The relevant information relating to the Directors to be re-appointed at the ensuing Annual General Meeting to be held on 20th
September, 2007 are given below:
i. Mrs. Cheryl Pinto 40, is a graduate in Pharmacy from the University of Bombay. She has over 19 years experience in the
pharmaceuticals business. She is also a Director of following Companies/Body Corporates:-
ii.
Name of the Companies/firms
Position
Glenmark Organics Ltd
Director
Glenmark Pharmaceuticals (Europe) Ltd
Director
Glenmark Philippines Inc
Director
Glenmark Pharmaceuticals Inc, USA
Director
Glenmark Pharmaceuticals (Nigeria) Ltd
Director
Glenmark Dominicana S.A
Director
Glenmark Pharmaceuticals (Malaysia) Sdn Bhd
Director
Glenmark Pharmaceuticals (Australia) Pty Ltd
Director
Glenmark South Africa (Pty) Ltd
Director
Glenmark Pharmaceuticals South Africa (Pty) Ltd
Director
Mr. Julio F.Ribeiro 78, is a retired government official and has served the country under various assignments. Amongst
the major positions held, he has been the Ex-Commissioner of Police, Mumbai, Former Special Secretary to Government
of India, Ministry of Home Affairs, former Director General of Police, Punjab, Ex-Adviser to the Governor of Punjab, ExAmbassador of India to Romania and is currently a Director in VVF Ltd.
iii. Mr. Sridhar Gorthi 35, is a B.A., LLB (Hons.) from the National Law School of India University. He is presently a partner
in Trilegal and has worked with Arthur Anderson and Lex Inde, Mumbai.He was involved in legal advisory services to
various multinational and domestic corporations on restructuring, debt finance, joint ventures, acquisition/ mergers etc.
b)
Share Transfer Process: The shares are sent /received for physical transfer at R& Ts office and all valid transfer requests are
processed and returned within a period of 30 days from the date of receipt. The Share transfers are approved on weekly basis
by the Share Transfer Committee.
c)
Dematerialisation of shares: As of 31st March, 2007, 98.70% of shares have been dematerialised and held in electronic form
through NSDL and CDSL. The shares of your company are permitted to be traded only in dematerialised form.
Share Holding Pattern as at 31st March, 2007:
d)
Description
Shares held
% to Equity
Company Promoters
16
65178069
54.28
Foreign Institutional Investors
95
30770096
25.63
28277
15583143
12.98
848
2299704
1.92
2178551
1.81
24
2171326
1.81
510
1104992
0.92
Banks
7311
0.01
H.U.F.
471
227501
0.19
Employees
140
228444
0.19
Clearing Members
198
152514
0.13
Directors
147975
0.12
Trusts
8482
0.01
30603
120058108
100.00
Resident Individuals
Bodies Corporate
Indian Financial Institutions
Mutual Funds
Non Resident Indians
TOTAL
58
No. of Share holders
e)
General Body Meetings:

i) The last three Annual General Meetings of the Company were held at the venue and time as under:
AGM No.
Date
Time
26
24th September
, 2004
11.00a.m
27
27th September, 11.00a.m

2005
28
29th September, 11.00a.m

2006
Venue
Sunville Banquet & Conference Hall, 3rd floor, Dr. Annie Besant Road,
Worli, Mumbai-400 018.
All resolutions moved at the last Annual General Meeting were passed by a show of hands by requisite majority of members who
attended the meeting.
ii) Whether any special resolution passed in the previous three AGMs?

Yes.

iii) Whether any special resolution passed last year through postal ballot?

No.

iv) Who conducted the postal ballot?

Not Applicable.

v) Whether any special resolution is proposed to be conducted through postal ballot?

No.

vi) Procedure for postal ballot.

Not Applicable.
f) Date ,Time and Venue of the Ensuing Annual General Meeting: - Annual General Meeting shall be held on 20th September, 2007
at 11.00 a.m. at Sunville Banquet & conference Hall, 3rd Floor, Dr. Annie Besant Road, Worli, Mumbai-400 018.
g) Record Date/ Book Closure: - 5th January, 2007 was fixed as record date for making payment of Interim dividend on Equity
share capital of the company.
Book Closure: 17th September, 2007 to 20th September, 2007 (both days inclusive)
h) Date of declaration of interim dividend:

Equity Shares: 26th December, 2006.
i) Financial Calendar (Tentative and Subject to change):
Financial reporting for the first quarter ending June 30, 2007.
Financial reporting for the second quarter ending September 30, 2007.
Financial reporting for the third quarter ending December 31, 2007.
Financial results for the year ending March 31, 2008.
j)
k)
l)
July 2007
October 2007
January 2008
May 2008
Members can avail of nomination facility by filing Form 2B with the Company. Blank forms can be downloaded from the website
of the Company.
Members may kindly note that consequent to split in the face value of equity shares of the company, the shares in the face
value of Rs.10/- have ceased to be valid for any purpose whatsoever. Members who are holding shares of the face value of
Rs.10/- each are requested to kindly send their respective share certificates to the R&T Agents for receiving five equity shares
of face value of Rs. 2/- each in exchange of one equity share of face value of Rs. 10/- each.
Pursuant to the provisions of Section 205A (5) of the Companies Act, 1956, dividend for the financial year ended March 31,
2000 and thereafter, which remain unclaimed for a period of seven years will be transferred by the Company to the Investor
Education and Protection Fund (IEPF) established by the Central Government pursuant to Section 205C of the Companies Act,
1956.
Information in respect of such unclaimed dividend when due for transfer to the said Fund is given below:
Financial Year Ended
Date of declaration of
Dividend
31.03.2001
31.03.2002
31.03.2003
31.03.2004
28.09.2001
27.09.2002
15.05.2003
29.03.2004
Date of transfer to
unpaid/ unclaimed
dividend account
28.10.2001
27.10.2002
15.06.2003
29.04.2004
Last date for claiming

unpaid Dividend
Due date for transfer

to IEP Fund
27.10.2008
26.10.2009
14.06.2010
28.04.2011
28.10.2008
27.10.2009
15.06.2010
29.04.2011
59
31.03.2005
31.03.2006
26.04.2005
31.01.2006
26.05.2005
02.03.2006
25.05.2012
01.03.2013
26.05.2012
02.03.2013
Shareholders who have not so far encashed their dividend warrant(s) are requested to seek issue of duplicate warrant (s) by
writing to the Companys Registrar and Transfer Agents, M/s. Karvy Computershare Pvt. Ltd. immediately. Shareholders are
requested to note that no claims shall lie against the Company or the said Fund in respect of any amounts which were unclaimed
and unpaid for a period of seven years from the dates that they first became due for payment and no payment shall be made in
respect of any such claims.
m) Means of Communication:
a. Quarterly/Half Yearly and Annual Financial Results of the Company are published in the Financial Express and Punyanagri
newspapers.
b. Your Companys results & official news releases are displayed on the companys website.
c. All items required to be covered in the Management Discussion & Analysis are included in the Directors Report to
Members.
d. Company has its own web site and all the vital information relating to the company and its products is displayed on its
web site: www.glenmarkpharma.com.
e. Whether presentation made to institutional investors or to the analysts Yes.

Your Company also regularly provides information to the stock exchanges as per the requirements of the Listing
Agreements. The Companys website is updated periodically to include information on new developments and business
opportunities of your Company.

The Management Discussion & Analysis forms a part of the Annual Report.
9. Companys Scrip Information:

Listing on stock exchanges: The shares of the Company are listed on Bombay Stock Exchange Limited & The National Stock
Exchange of India Ltd.

Listing fees for the year 2006-07 have been paid to the Stock Exchanges.
Stock Code: 532296 on the BSE

Electronic Form No.INE935A01027

Scrip Name

GLENMARK PHA- BSE

GLENMARK - NSE
Market Price Data: High, low during each month in last financial year. Performance in comparison to broad based indices namely
BSE Sensex.
(All figures in Indian Rupees)
MONTHS
High
Low
Glenmark
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Jan-07
Feb-07
Mar-07
356.00
397.80
343.00
326.50
370.80
362.90
440.50
594.00
645.50
664.00
635.70
643.00
296.70
262.05
228.00
299.00
295.25
306.25
296.25
406.00
491.10
571.10
528.20
495.00
325.60
324.75
300.85
305.20
345.20
313.90
416.00
563.80
599.45
617.00
535.35
609.80
BSE
Sensex
12,042.56
10,398.61
10,609.25
10,743.88
11,699.05
12,454.42
12,961.90
13,696.31
13,786.91
14,090.92
12,938.09
13,072.10
10. Plant Locations:

60
The Companys plants are located at:

i) E-37, MIDC Industrial Area, D Road, Satpur, Nasik-422007, Maharashtra.
ii) 3109-C, GIDC Industrial Estate, Ankleshwar 393 002 Dist. Bharuch.
iii)
iv)
v)
vi)
Plot no. 7, Colvale Industrial Estate, Bardez, Goa.

Plot no. A- 80, MIDC Area, Kurkumbh, Daund, Pune, Maharashtra.
Plot No. 163- 165 & 170 172, Chandramouli Industrial Estate, Mohol, Sholapur 413213,Maharashra.
Village: Kishanpura, Baddi Nalagarh Road, Tehsil: Nalagarh, Dist.: Solan 174101, Himachal Pradesh.
11. Outstanding GDRs/ADRs/Warrants or any Convertible instruments exercise date and likely
impact on equity :
A)
The Company had issued 5,00,500 new options under Employees Stock Option Scheme viz. ESOS 2003. During the Financial
Year 2006-2007, 4,74,800 options were cancelled and 1,72,940 options were exercised. As of 31st March 2007,16,89,340
options were outstanding and are due for exercise on the following dates:
ESOS 2003
Date
May 30, 2007
July 5, 2007
September 17, 2007
October 22, 2007
November 8, 2007
January 25, 2008
February 17, 2008
April 27, 2008
May 11, 2008
May 30, 2008
July 5, 2008
August 14, 2008
September 17, 2008
October12, 2008
October 22, 2008
November 8, 2008
January 25, 2009
February 17, 2009
March 21, 2009
April 27,2009
May 11, 2009
May 30, 2009
July 5, 2009
August 14, 2009
September 17, 2009
October 12, 2009
November 8, 2009
January 25, 2010
February 17, 2010
March 21, 2010
April 27, 2010
May 11,2010
August 14, 2010
October 12, 2010
November 8, 2010
March 21, 2011
April 27, 2011
Number of Options
35,000
63,700
37,000
1,95,960
17,750
38,900
8,400
15,950
1,750
17,500
43,800
12,050
45,300
300
2,61,280
35,500
47,400
8,400
18,050
31,900
3,500
35,000
58,400
24,100
60,400
600
53,250
63,200
11,200
36,100
47,850
5,250
36,150
900
71,000
54,150
63,800 61
May 11, 2011

August 14, 2011
October 22, 2011
March 21, 2012
7,000
48,200
1,200
72,200
On exercising the convertible options so granted under the ESOS of the Company, the paid-up equity share capital of the
company will increase by a like number of shares.
B) The company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each.
i. Convertible at the option of the bondholder at any time on or after 28th March, 2005 but prior to the close of business
on 2nd January, 2010 at a fixed exchange rate of Rs.43.66 per 1 USD and price of Rs.862.394 per share of par value of
Rs.2 per share subject to adjustment in certain events i.e. issue of bonus shares, division, consolidation, reclassification of
shares etc.
ii. Redeemable in whole but not in part at the option of the company on or after 15th February, 2008 if closing price of the
share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such redemption is
given was at least 130% of the applicable Early Redemption Amount divided by the conversion ratio.
iii. Redeemable on maturity date on 16th February, 2010 at 133.74% of its principal amount if not redeemed or converted
earlier. The redemption premium of 33.74% payable on maturity of the bond if there is no conversion of the bond to be
debited to Securities Premium account evenly over the period of 5 years from the date of issue of bonds.

Out of the above, 11500 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each were converted into
1164408 Equity Shares during the year.
C) The company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each.
i. Convertible at the option of the bondholder at any time on or after 15th November, 2006 but prior to the close of business
on 2nd January, 2010 at a fixed exchange rate of Rs.43.66 per 1 USD and the price greater of 35% of the average of
the order book volumeweighted-average-price of a share on each Trading Day during the period commencing on 15th
September, 2006 and ending on 14th November, 2006 and the Floor Price (Rs.500) of par value of Rs.2 per share.
ii. Redeemable in whole but not in part at the option of the company on or after 15th February, 2009 if closing price of the
share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such redemption is
given was at least 130% of the applicable Early Redemption Amount divided by the conversion ratio.
iii. Redeemable on maturity date on 16th February, 2010 at 134.07% of its principal amount if not redeemed or converted
earlier. The redemption premium of 34.07% payable on maturity of the bond if there is no conversion of the bond to be
debited to Securities Premium account evenly over the period of 5 years from the date of issue of bonds.
D) The company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1000 each.
i. Convertible at the option of bondholder at any time on or after 11th November, 2007 and prior to the close of business on
29th November, 2010 to convert its Bonds into Shares. The initial Conversion price for bonds will be determined on 10th
November, 2007 based on the average price of the shares for the previous two months, subject to a Floor Price of Rs.
317.25 per share.
ii. Redeemable in whole but not in part at the option of the Company, at any time on or after 10th January, 2010, if the
closing price of shares (translated into US Dollars at the prevailing rate) for each of the 25 consecutive trading days
immediately prior to the date upon which notice of redemption is given was at least 130% of the applicable early
redemption amount divided by the applicable Conversion Ratio.
iii. Redeemable on 11th January, 2011 at 139.729% of its Principal amount if not redeemed or converted earlier. The
redemption premium of 39.729% payable on maturity of the bond if there is no conversion of the bond to be debited to
Securities Premium account evenly over the period of 5 years from the date of issue of bonds.
12. Electronic Clearing System (ECS):

62
Shareholders are advised to opt for payment of dividend through ECS. The salient benefits of receiving dividend payment through
ECS amongst others may be listed as below:
a) There are no clearing charges in the hands of the investor/ recipient, the same are borne by the company;
b) Risk as to fraudulent encashment of the dividend warrants, loss / interception of dividend warrants in transit, are
eliminated;
c) The facility ensures instant credit of the dividend amount in the desired account which to the recipient, means effortless
and speedier transaction and hassles as to revalidation etc are done away with;
d) Once the payment is made through ECS company issues intimation letters to the investors as to credit / payment of
dividend, providing therein the details of the account and amount. Investors may download the ECS Mandate Form from
the companys website and send the same duly filled in to registrars for updation of records.
13. Investor Helpdesk: for clarifications / assistance, if any, please contact:Persons to contact
Address
Telephone
Fax No.
Email
Website:
Investor Redressal:
Corporate Office
Sanjay Chowdhary
Glenmark Pharmaceuticals Ltd
Glenmark House, HDO Corporate
Building, Wing A, B. D. Sawant
Marg, Chakala, Off. Western Express
Highway, Andheri (E), Mumbai 400 099.
(022) 67589999
(022) 67589986
webmaster@glenmarkpharma.com
complianceofficer@glenmarkpharma.
com
Registrars & Transfer Agents

M.R.V. Subrahmanyam
Karvy Computershare Pvt. Ltd
Plot No.17 to 24, Near Image Hospital,
Vittalrao Nagar, Madhapur, Hyderabad500081.
(040) 23420818-828
(040) 23420814
mrvs@karvy.com
www.karvy.com
Declaration regarding affirmation of Code of Conduct

In terms of the requirements of the amended Clause 49 of the Listing Agreement, this is to confirm that all the members of the
Board and the senior management personnel have affirmed compliance with the Code of Conduct for the year ended 31st March,
2007.

Mumbai
Glenn Saldanha
Date: 13th August, 2007
Managing Director & Chief Executive Officer
Certification by the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) on Financial
Statements of the Company
We, Glenn Saldanha, Managing Director & Chief Executive Officer and R. V. Desai, Chief Financial Officer, of Glenmark
Pharmaceuticals Ltd., certify that:
(a) We have reviewed financial statements and cash flow statement for the year and that to the best of our knowledge and belief:
i) these statements do not contain any materially untrue statement or omit any material facts or contain statements that
might be misleading;
ii) these statements together present a true and fair view of the companys affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which are
fraudulent, illegal or violative of the companys code of conduct.
(c) We accept responsibility for establishing and maintaining the internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the
auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the auditors and the Audit Committee:
i) significant changes in internal control over financial reporting during the year;
ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements:
iii) during the year there were no instances of fraud which we have become aware. The management and its employees have
a significant role in the Companys internal control system.
Glenn Saldanha
Managing Director & Chief Executive Officer
R. V. Desai
Chief Financial Officer
Place: Mumbai
Date: 25th April, 2007
63
Certificate on Corporate Governance

To the Members of:GLENMARK PHARMACEUTICALS LIMITED
We have reviewed the implementation of Corporate Governance procedures by Glenmark Pharmaceuticals Limited for the year ended
March 31, 2007, with the relevant records and documents maintained by the Company, furnished to us for our review and the report
on Corporate Governance as approved by the Board of Directors.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to
a review of procedures and implementation thereof, adopted by the Company for ensuring the compliances of the conditions of
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and explanations given to us, we certify that the Company has complied with the
conditions of Corporate Governanace as stipulated in the Listing Agreement.
On the basis of our review and according to the information and explanations given to us, the conditions of Corporate Governance
as stipulated in Clause 49 of the Listing Agreement(s) with the stock exchanges have been complied with all material respect by
the Company and that no investor grievance is pending for a period exceeding one month against the Company as per the records
maintained by the Shareholders/Investors Grievance Committee.
We further state that such compliance is neither an assurance as to the future validity of the company nor the efficiency or
effectiveness with which the management has conducted affairs of the Company.
S.S.Rauthan & Associates
Company Secretaries

Mumbai
13th August, 2007.
64
Surjan Singh Rauthan

Proprietor
M. No.-FCS-4807
COP-3233
AUDITORS REPORT
To The Members Of
GLENMARK PHARMACEUTICALS LIMITED
1. We have audited the attached Balance Sheet of Glenmark Pharmaceuticals Limited, as at 31st March, 2007 and the related
Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under
reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our
opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment)
Order, 2004, (together the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of
The Companies Act, 1956 of India (the Act) and on the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and explanations given to us, we give in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for
the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our
examination of those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the
books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with
the accounting standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the Directors of the Company, as on 31st March, 2007 and taken on
record by the Board of Directors of the Company, none of the directors is disqualified as on 31st March, 2007 from being
appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to the explanations given to us, the said financial
statements together with the notes thereon and attached thereto give in the prescribed manner the information required by
the Act and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2007;
(ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

Mumbai, April 25, 2007


Partha Ghosh
Partner
65
Annexure to Auditors Report

[Referred to in paragraph 3 of the Auditors Report of even date to the members of Glenmark Pharmaceuticals Limited on the financial statements for the year ended
31st March, 2007]
1. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed

assets.
(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the
items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the
management during the year and no material discrepancies between the book records and the physical inventory have been
noticed.
(c) In our opinion, a substantial part of fixed assets has not been disposed off by the Company during the year.
2. (a) The inventory (excluding stocks with third parties and materials in transit) has been physically verified by the management

during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our

opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material
and have been properly dealt with in the books of account.
3. (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Accordingly, clauses (iii)(b) to (iii)(d) of paragraph 4 of the Order are not
applicable to the Company.
(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Accordingly, clauses (iii)(f) and (iii)(g) of paragraph 4 of the Order are not
applicable to the Company.
4. In our opinion and according to the information and explanations given to us, having regard to the explanation that certain items
of inventories purchased are of special nature for which suitable alternative sources do not exist for obtaining comparative
quotations, there is an adequate internal control system commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale of goods and services. Further, on the basis of our
examination of the books and records of the company, and according to the information and explanations given to us, we have
neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal
control system.
5. (a) In our opinion and according to the information and explanations given to us, there have been no contracts or arrangements
referred to in Section 301 of the Act during the year to be entered in the register required to be maintained under that
Section. Accordingly, commenting on transactions made in pursuance of such contracts or arrangements does not arise.
(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance
of such contracts or arrangements and exceeding the value of Rupees Five Lakhs in respect of any party during the year,
which have been made at prices which are not reasonable having regard to the prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the
rules framed there under.
7. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the Rules
made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section
(1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are
accurate or complete.
9. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion,
the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income-tax, Wealth Tax, Sales Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues as applicable, with the appropriate authorities in India.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no
dues of Wealth Tax, Sales Tax, Service Tax, Customs Duty and Cess which have not been deposited on account of any
dispute.
66
The particulars of dues of Income-tax and Excise Duty as at 31st March, 2007 which have not been deposited on account of a
dispute are as follows Name of the statute
Nature of dues
The Income-tax Act, 1961
Income-tax
The Central Excise Act, 1944
Excise Duty
Amount *
Period to which the
amount relates
(Rs. Lakhs)
227.28 Assessment years
1999-2000,
2001-2002 and
2004-2005
254.66 2002 to 2005
Forum where the

dispute is pending
Commissioner of
Income-tax (Appeals)
The Central Excise

and Service Tax
Appellate Tribunal

* Net of amount deposited under protest.
10. The Company has no accumulated losses as at 31st March, 2007 and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the information and explanations given to us, the Company has not
defaulted in repayment of dues to any financial institution or bank as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.
13. The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments.
15. In our opinion, and according to the information and explanations given to us, the Company has not given any guarantee for loans
taken by others from banks or financial institutions during the year.
16. In our opinion, and according to the information and explanations given to us, on an overall basis, the term loans have been
applied for the purposes for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the Company, in our opinion and according to the information and
explanations given to us, short-term funds amounting to Rs. 4511 lakhs have been used for long-term investments.
18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained
under Section 301 of the Act during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the year.
21. During the course of our examination of the books of account and records of the Company, carried out in accordance with the
generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither
come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been
informed of such case by the management.


Partha Ghosh
Partner
67
BALANCE SHEET
Rs. In (000s)
As at 31st March,
I.
Schedules
2007
2006
SOURCES OF FUNDS
1.
2.
3.
SHAREHOLDERS FUNDS
a) Share Capital
b) Reserves and Surplus
1
2
240,116
4,261,473
4,501,589
437,486
2,750,122
3,187,608
LOAN FUNDS
a) Secured Loans
b) Unsecured Loans
3
4
DEFERRED TAX LIABILITY

Less: Deferred Tax Asset
5
6
1,700,276
7,387,140
9,087,416
799,097
36,814
762,283
14,351,288
1,418,318
5,868,404
7,286,722
499,929
31,407
468,522
10,942,852
3,646,567
877,435
2,769,132
1,562,958
4,332,090
1,390,955
3,189,625
663,952
2,525,673
575,565
3,101,238
435,648
TOTAL
II.
APPLICATION OF FUNDS
1.
2.
3.
FIXED ASSETS
a) Gross Block
b) Less : Depreciation
c) Net Block
d) Capital Work-in-progress
INVESTMENTS
CURRENT ASSETS, LOANS AND ADVANCES
a) Inventories
b) Sundry Debtors
c) Cash and Bank Balances
d) Loans and Advances
8
9
10
11
12
2,182,009
4,209,936
113,882
3,986,257
10,492,084
1,388,916
2,827,924
891,570
3,402,554
8,510,964
Less : CURRENT LIABILITIES AND PROVISIONS

a) Current Liabilities
b) Provisions
13
14
1,857,123
6,718
1,863,841
8,628,243
14,351,288
1,096,926
8,072
1,104,998
7,405,966
10,942,852
NET CURRENT ASSETS

TOTAL
NOTES TO THE FINANCIAL STATEMENTS
integral part of the Balance Sheet.
21
This is the Balance Sheet referred to in our report of even date.

Price Waterhouse
Partha Ghosh
Glenn Saldanha
Partner
68
Rajesh Desai
Director - Finance
Sanjay Chowdhary
PROFIT AND LOSS ACCOUNT

Rs. In (000s)
Schedules
2007
2006
15
16
8,371,183
62,644
8,433,827
6,184,362
53,118
6,237,480
Cost of Sales
17
18
3,605,215
2,223,731
3,217,818
1,603,471
Depreciation/Amortisation
Interest (net)
Research and Development Expenses
7
19
20
PROFIT BEFORE TAX
234,575
229,494
432,644
6,725,659
1,708,168
174,848
58,164
330,170
5,384,471
853,009
Provision for Taxation [Refer Note (1)(ix) and 9 of Schedule 21]

- Current Year [includes wealth tax provision Rs.230 ( 2006 -- Rs.221)]
- MAT Credit Entitlement
- Prior Period Tax
- Deferred Tax
- Fringe Benefit Tax
NET PROFIT AFTER TAX
187,429
(181,219)
20,423
293,761
39,731
1,348,043
71,900
(33,268)
107,697
33,640
673,040
Balance Profit Brought Forward

NET PROFIT AVAILABLE FOR APPROPRIATION
Dividend on Preference Shares
Tax on Dividend on Preference Shares
Tax on Interim Dividend on Equity Shares
Transfer to General Reserve
BALANCE CARRIED TO BALANCE SHEET
1,456,399
2,804,442
6,942
974
95,756
13,430
200,000
140,000
2,347,340
964,084
1,637,124
14,000
1,964
83,105
11,656
70,000
1,456,399
11.26
10.02
2.00
5.54
4.87
2.00
INCOME
Sales & Operating Income
Other Income
EXPENDITURE
Earnings Per Share (Rs.) [Refer Note 2 of Schedule 21]

Basic
Diluted
Face Value Per Share
NOTES TO THE FINANCIAL STATEMENTS
integral part of the Profit and Loss Account.
21
This is the Profit and Loss Account referred to in our report of even date.
Price Waterhouse
Partha Ghosh
Glenn Saldanha
Partner
Rajesh Desai
Director - Finance
Sanjay Chowdhary
69
Cash Flow Statement

Rs. In (000s)
2007
2006
1,708,168
853,009
Depreciation
234,575
174,848
Interest Expense
393,589
174,268
239
(164,095)
(116,343)
(2)
(1,210)
(11,195)
896
(800)
25,000
20,000
(2,145)
40,432
10,867
(311)
2,226,472
1,113,318
(1,435,420)
(1,021,334)
- (Increase)/Decrease in Other Receivables
(401,039)
(165,573)
- (Increase)/Decrease in Inventories
(793,093)
(278,323)
501,033
222,565
97,953
(129,347)
(186,225)
(125,574)
(88,272)
(254,921)
Purchase of Fixed Assets
(514,728)
(702,032)
Capital Work in Progress
(987,393)
(429,660)
Proceeds from Sale of Fixed Assets
78,508
58,548
Proceeds from Sale of Investments
116,761
(1,053,116)
(200,384)
(123,452)
(1,184,840)
(3,907)
Interest Received
104,177
70,258
Dividend Received
1,210
(2,379,241)
(2,390,807)
A. Cash Flow from Operating Activities:

Net Profit before Tax
Adjustments for:
Interest Expense - Finance Lease

Interest Income
Income from Investment - Dividends
(Profit)/Loss on Fixed Assets sold
Provision for Bad & Doubtful Debts
Provision for Gratuity & Leave Encashment
Unrealised Foreign Exchange (Gain)/Loss
Employee Stock Option Plan
Operating Profit Before Working Capital Changes
Adjustments for changes in working capital :

- (Increase)/Decrease in Sundry Debtors
- Increase/(Decrease) in Trade and Other Payables

Cash Generated from Operations
- Taxes (Paid)/Received (Net of Tax Deducted at Source)
Net Cash Used in Operating Activities
B. Cash Flow from Investing Activities:
Purchase of Investments
Loan to Subsidiary Companies
Finance Lease Rent Payment Against Principal Amount
Net Cash Used in Investing Activities
70
Cash Flow Statement
Rs. In (000s)
2007
2006
311,343
3,668
(54,934)
Proceeds/(Repayment) of Long Term Borrowings
(76,083)
(256,703)
Proceeds/(Repayment) of Short Term Borrowings
1,603,127
2,745,424
358,041
385,895
(239)
Interest Paid
(389,952)
(173,751)
Dividend Paid
(102,248)
(179,590)
(14,403)
(25,265)
Net Cash From Financing Activities
1,689,825
2,444,505
Net Decrease in Cash & Cash Equivalents
(777,688)
(201,223)
891,570
1,092,793
113,882
891,570
1,173
1,133
31,683
39,728
139
809,846
78,752
39,856
2,135
1,007
113,882
891,570
C. Cash Flow from Financing Activities:

Proceeds from Fresh Issue of
Share Capital (including Securities Premium)
Issue Expenses of Foreign Currency Convertible Bonds
Proceeds from Cash Credits (Net)

Finance Lease Rent (Interest Part only)
Dividend Tax Paid
Cash and Cash Equivalents Comprise

Cash
Deposits with Scheduled Banks
Deposits with Non-scheduled Banks
Balance with Scheduled Banks
Balance with Non-scheduled Banks
Total
Notes :
1 The Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting Standard - 3 on Cash Flow
2 Cash and cash equivalents includes Rs. 3,997 which are not available for use by the Company. (Refer Schedule 13 to the
Financial Statements)
3 Figures in bracket indicate Cash outgo.
This is the Cash Flow Statement referred to in our report of even date.
Price Waterhouse
Partha Ghosh
Glenn Saldanha
Partner
Rajesh Desai
Director - Finance
Sanjay Chowdhary
71
Schedules Forming Part Of The Balance Sheet

Rs. In (000s)
As at 31st March,
1. SHARE CAPITAL
Authorised
175,000,000 (2006 -- 150,000,000) Equity Shares of Rs 2 each
4,000,000 (2006 -- 4,000,000) Cumulative Redeemable
Non Convertible Preference Shares of Rs 100 each
Unclassified Capital
Issued, Subscribed and Paid-up
120,058,108 (2006 -- 118,720,760) Equity Shares of Rs 2 each
Nil (2006 -- 2,000,000) 7% Redeemable Cumulative Non-Convertible
Preference Shares of Rs.100 each
(Redeemed on 28th September, 2006 as per terms of issue)
Equity Share Warrants
Nil (2006 -- 440,000) Equity Share Warrants of Rs. 0.10 each
TOTAL
Note
2007
2006
350,000
300,000
400,000
-
400,000
50,000
240,116
-
237,442
200,000
240,116
44
437,486
Notes :
1. In terms of Employee Stock Option Plan approved by the members Nil (2006 -- 440,000) convertible warrants are
outstanding with Glenmark Pharmaceuticals Limited Employees Welfare Trust. During the year 440,000 warrants were
cancelled.
2. During the year ended March 31, 2007 the Company, pursuant to Employee Stock Option Scheme 2003, has granted
500,500 (2006 - 333,000) options at market price as defined in SEBI ( ESOS ) Guidelines and cancelled 474,800 (2006 537,150) options [ Number adjusted after split of face value and issue of bonus shares].
3. During the year 172,940 (2006 - 89,620) (Number of options and price were adjusted after split of face value and issue
of bonus shares) were converted into Equity Shares under the Employee Stock Option Scheme, 2003. As at March 31,
2007 1,689,340 (Number adjusted after split of face value and issue of bonus shares) options were outstanding under
Employee Stock Option Scheme 2003. On exercise of the options so granted under Employee Stock Option Scheme 2003,
the paid up Equity Share Capital of the Company will increase by a like number of shares.
4. During the year, 11,500 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each aggregating USD 11.5
million were converted into 1,164,408 Equity Shares of Rs.2 each.
5. Of the above 79,185,570 (2006 - 79,185,570) Equity Shares of Rs. 2 each are allotted as fully paid-up Bonus Shares by
Capitalisation of Reserves.
2.
RESERVES AND SURPLUS

Add: Issue of Shares/Conversion of ESOP
Add: Conversion of FCC Bonds during the year
Add: Calls in Arrears received
Less : Issue cost of FCCB [Net of tax]
Add: Writeback of Redemption Premium for FCC Bonds converted
during the year.
Less : Redemption Premium of FCCB
Closing Balance
72
517,033
8,953
499,760
48,914
758,689
3,449
19
36,443
-
277,218
797,442
208,681
517,033

As at 31st March,
Note
General Reserve
Add : Transferred from Profit & Loss Account
Closing Balance
Capital Redemption Reserve
Add : Transferred from Profit & Loss Account on Redemption of
Preference Share
Closing Balance
Capital Reserve
Employee Stock Option
Employee Stock Options outstanding
Less : Conversion of Option
Note :
1.
3.
2007
2006
775,691
140,000
915,691
705,691
70,000
775,691
200,000
200,000
1,000
1,000
2,347,340
4,261,473
370
202
168
59
31
28
1,456,399
2,750,122
Deferred Employee Stock Compensation

Less : Amortisation of ESOP expense
Net Employee Stock Option
Profit and Loss Account Balance
TOTAL
Rs. In (000s)
B
A-B
During the year ended March 31, 2007, 200,000 7% Redeemable Cumulative Non-Convertible Preference Shares of
Rs.100 each were redeemed as per the terms of issue.
SECURED LOANS
Term Loan
Working Capital Facilities
Other Loans
TOTAL
1
2
3
675,000
1,022,631
2,645
1,700,276
743,750
664,590
9,978
1,418,318
Notes :
1. Term loan is secured by way of exclusive charge as the case may be, at certain locations, on Companys fixed assets both
present and future.
2. Working Capital Facilities from Bank are secured by Hypothecation of Stocks of raw materials, packing materials, finished

goods, work in progress, receivables and equitable mortgage on fixed assets at the manufacturing facility at Nasik and Research
and Development Centre at Sinnar, Nasik.
3. Other Loans are secured by way of Hypothecation of Vehicles.
73

As at 31st March,
4.
2007
2006
3,512,576
3,851,520
12,599
10,445
7,387,140
1,413,629
4,438,000
6,330
10,445
5,868,404
UNSECURED LOANS
Short Term Loan from Banks
Foreign Currency Convertible Bonds
Security Deposit
Deferred Sales Tax Loan
TOTAL
74
Note
Rs. In (000s)
1
2
Notes :
1. FCCB Issue
A) The Company had issued 30,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs.1,331,700 at
issue)
business on 29th November, 2010 at a fixed exchange rate of Rs.44.94 per 1 USD and the price greater of 35%
of the average of the order book volumeweighted-average-price of a share on each Trading Day during the period
commencing on 10th September 2007 and ending on 10th November, 2007 and the Floor Price (Rs.317.25) of par
value of Rs.2 per share.
(ii) Redeemable in whole but not in part at the option of the Company on or after 10th January, 2010 if closing price
(iii) Redeemable on maturity date on 11th January, 2011 at 139.729% of its principal amount if not redeemed or
converted earlier. The redemption premium of 39.729% payable on maturity of the bond if there is no conversion of
the bond to be debited to Securities Premium Account evenly over the period of 5 years from the date of issue of
bonds.
B) The Company had issued 20,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs.873,200 at
issue)
(i) Convertible at the option of the bondholder at any time on or after 28th March, 2005 but prior to the close of
business on 2nd January, 2010 at a fixed exchange rate of Rs.43.66 per 1 USD and price of Rs.862.394 per
share of par value of Rs.2 per share subject to adjustment in certain events i.e. issue of Bonus Shares, Division,
Consolidation, Reclassification of Shares etc.
of the Share for each of the 25 consecutive trading days immediately prior to the date upon which notice of such
converted earlier. The redemption premium of 33.74% payable on maturity of the Bond if there is no conversion of
Bonds.

During the year out of the above, 11,500 FCC Bonds of USD 1,000 each aggregating to USD 11.5 million were
converted into 1,164,408 equity shares of Rs.2 each.
C) The Company had issued 50,000 Zero Coupon Foreign Currency Convertible Bonds of USD 1,000 each (Rs.2,183,000 at
issue)
business on 2nd January, 2010 at a fixed exchange rate of Rs.43.66 per 1 USD and the price greater of 35% of
the average of the order book volumeweighted-average-price of a share on each Trading Day during the period
commencing on 15th September, 2006 and ending on 14th November, 2006 and the Floor Price (Rs.500) of par
value of Rs.2 per share.
converted earlier. The Redemption Premium of 34.07% payable on maturity of the Bond if there is no conversion of
Bonds.
2. The Company has availed of an interest free sales tax deferral loan under Part I of the 1983 and 1988 Package Schemes of the
Government of Maharashtra, repayable after twelve years in six half-yearly installments.
Rs. In (000s)
As at 31st March,
5.
2006
799,097
799,097
499,929
499,929
36,814
36,814
28,041
3,366
31,407
DEFERRED TAX LIABILITY [Refer Note (1)(ix) of Schedule 21]

Liabilities
Depreciation
TOTAL
6.
2007
DEFERRED TAX ASSET [ Refer Note (1)(ix) of Schedule 21]

Assets
Provision for Bad Debts and Doubtful Advances
Others
TOTAL
7. FIXED ASSETS [Refer note (1)(ii),(1)(x),(1)(xi),(1)(xii) and (6) of Schedule 21]

GROSS BLOCK
As on
1st Apr,
2006
Additions
during the
year
Rs. In (000s)
DEPRECIATION/AMORTISATION
Deduction
As on
31st Mar,
2007
As on
1st Apr,
2006
For the year
Deduction
NET BLOCK
As on
31st Mar,
2007
As on
31st Mar,
2007
As on
31st Mar,
2006
Tangible assets
Freehold Land
Leasehold Land
34,431
34,431
34,431
34,431
86,530
10,838
(4,259)
93,109
2,917
904
(268)
3,553
89,556
83,613
Factory Buildings
514,018
135,100
(22,065)
627,053
43,925
18,248
(4,952)
57,221
569,832
470,093
Other Buildings &

Premises
241,105
503
(32,521)
209,087
18,107
3,494
(2,995)
18,606
190,481
222,998
Plant and Machinery
482,825
86,661
(5,838)
563,648
61,678
28,855
(1,809)
88,724
474,924
421,147
Furniture and
Fixtures
229,269
41,188
(7,674)
262,783
72,405
31,128
(3,143)
100,390
162,393
156,864
1,169,313
207,355
(4,312)
1,372,356
237,124
102,411
(2,344)
337,191
1,035,165
932,189
50,285
13,012
(11,585)
51,712
18,504
7,535
(5,581)
20,458
31,254
31,781
31,780
12,917
44,697
10,919
4,609
15,528
29,169
20,861
Equipments
Vehicles
Intangible assets
- Computer software
350,069
37,622
387,691
198,373
37,391
235,764
151,927
151,696
TOTAL
- Brands
3,189,625
545,196
(88,254)
3,646,567
663,952
234,575
(21,092)
877,435
2,769,132
2,525,673
Previous Year
2,586,231
682,313
(78,919)
3,189,625
493,221
174,848
(4,117)
663,952
2,525,673
2,093,010
1,562,958
575,565
Capital Work-in-process including Capital Advances.
Notes :
1. Additions to assets include Rs.Nil (2006 -- Rs.6,898) being borrowing costs.
2. Capital Work in progress includes :
At Aurangabad Plant
At Ankleshwar Plant
At Baddi Plant
At Goa Plant
At R&D Centre Mahape including Product development
Capital Advances
Other work-in-processes
2007
206,454
6,883
105,729
1,004,234
225,677
13,981
2006
9,977
124,299
880
346,548
82,104
11,757
75

As at 31st March,
8.
Rs. In (000s)
2007
2006
INVESTMENTS [Refer Note (1)(iv) of Schedule 21 ]

LONG TERM INVESTMENTS
Quoted - traded
Equity shares
9,000 (2006 -- 9,000) Bank of India of Rs.10 each [Market Value Rs.1,510
(2006 -- Rs. 1,201)]
405
405
1,209 (2006 -- 1,209) IDBI Bank Limited of Rs.10 each [Market Value Rs.94
(2006 -- Rs.95)]
34
34
439
439
National Savings Certificate -Sixth Issue
22
12
1 (2006 -- 1) Time Share of Dalmia Resorts Limited

1 (2006 -- 1) Equity Share of Esquados 340,000 of Glenmark
Pharmaceutica Limitada, Lisbon (Portugal)
213,032 ( 2006 - 213,032 ) Equity Shares of Bharuch Eco-Aqua
Infrastructure Limited of Rs.10 each, fully paid up .
Nil ( 2006 - 100,000) 12% cumulative preference shares of Rs 100
each fully paid up of Cheryl Laboratories (P) Limited
1,350,000 ( 2006 - 1,350,000) 7% cumulative preference shares of Rs 100
each fully paid up of Marksans Pharma Ltd
Investments in Subsidiary Companies
a) Glenmark Exports Limited, India
[100,020 ( 2006 - 100,020) Equity Shares of Rs 10 each]
b) GM Pharma Limited, India
[ 100,000 ( 2006 - 100,000) Equity Shares of Rs 10 each]
c) Glenmark Impex LLC, Russia
[ Roubles 47,427,525 ( 2006 - 8,235,958 ) ]
d) Glenmark Philippines Inc., Philippines
[ 175,000 ( 2006 - 56,000) shares of Pesos 200 each ]
e) Glenmark Pharmaceuticals S.A., Switzerland
[ Nil ( 2006 - 3,000,000) shares of CHF 1 each ]
f) Glenmark Pharmaceuticals (Europe) Ltd , U.K.
[ 3,455,121 ( 2006 - 1,307,131 ) shares of Pound 1 each ]
g) Glenmark Pharmaceuticals Nigeria Ltd., Nigeria
[ 24,857,025 ( 2006 - 12,750,759 ) shares of Naira 1 each ]
h) Glenmark Pharmaceuticals Sdn.Bhd.,Malaysia
[ 297,511 ( 2006 -121,064 ) shares of RM 1 each]
i ) Glenmark Organics Ltd, India
[ 50,000 ( 2006 - 50,000 ) shares of Rs.10 each ]
j) Glenmark Dominicana S.A.,Dominica Republic
[ 50 ( 2006 - 50 ) shares of RD 1000 each]
k) Glenmark Pharmaceuticals (Australia) Pty.Ltd., Australia.*
[ 2 ( 2006 - 2 ) shares of AUD 1 each]
l) Glenmark Holding S.A.[ 22,520,000 ( 2006 - Nil ) shares of CHF 1 each]
20
20
48
2,130
48
2,130
10,000
135,000
135,000
1,000
1,000
1,000
1,000
79,245
12,812
28,902
9,050
106,761
289,699
105,781
8,591
6,101
3,686
1,434
500
500
797,113
43,560
43,560
1,390,516
1,390,955
435,209
435,648
Unquoted - non trade
Investment with Napo Pharmaceuticals Inc

[ 1,176,471 ( 2006 - 1,176,471 ) Preferred shares of USD 0.85 each ]
TOTAL
* denotes amount less than Rs.1 ( 000)
76

As at 31st March,
9.
INVENTORIES [Refer Note (1)(v) and (12)(f) of Schedule 21]
(As certified by the management)
Raw Materials
Packing Material
Work-in-Process
Stores and Spares
Finished Goods
TOTAL
10.
Rs. In (000s)
2007
2006
766,354
145,485
656,089
28,932
585,149
2,182,009
568,573
74,235
320,557
12,838
412,713
1,388,916
496,560
600,950
98,598
595,158
98,598
496,560
73,598
674,548
73,598
600,950
3,713,376
2,226,974
TOTAL
3,713,376
4,209,936
2,226,974
2,827,924
SUNDRY DEBTORS
Outstanding for more than six months
Secured, considered good
Unsecured, considered doubtful
Less: Provision for doubtful debts
Other debtsSecured, considered good
Debts due from Subsidiary Companies,

Glenmark Exports Ltd., India Rs. 524,563 (2006 -- Rs 563,644),
Glenmark Pharmaceuticals Inc., U.S.A. Rs.1,276,468 (2006 - Rs.119,591),
Glenmark Farmaceutica Ltda, Brazil Rs. 2,287 (2006 - Rs.5,288 ),
Glenmark Philippines Inc., Philippines Rs.18,260 (2006 - Rs.7,709),
Glenmark Pharmaceuticals S.A., Switzerland Rs. 4,333 ( 2006 - Rs.Nil ).
11.
CASH AND BANK BALANCES

Cash in hand
Balances with Schedule banks
- Current accounts
1,173
1,133
73,731
32,274
- Margin Money Account

- EEFC Account
27,732
5,021
35,068
7,582
- Deposit accounts
Balances with Non Scheduled Banks
3,951
4,660
- Current Accounts
2,135
1,007
- Deposit Accounts
TOTAL
139
113,882
809,846
891,570
The balances in the margin money accounts are given as security against guarantees issued by banks on behalf of the Company.
12. LOANS AND ADVANCES (Unsecured, considered good)

Loans and Advances to Subsidiaries
Glenmark Pharmaceuticals Inc., U.S.A. [Maximum during the year
Rs.39,505 ( 2006 -- Rs. 39,505)]
Glenmark Pharmaceuticals (Europe) Ltd , U.K. [Maximum during the year
Rs.6,014 (2006 -- Rs. 6,014)]
9,720
-
39,505
6,014 77

As at 31st March,
Glenmark Pharmaceuticals S.A., Switzerland.[Maximum during the year
Rs.2,946,928 (2006 -- Rs. 2,501,993)]
Glenmark Holding S.A., Switzerland.[Maximum during the year Rs. 3,544,300
(2006 -- Rs. Nil)]
Glenmark Exports Ltd., India [Maximum during the year Rs.58,804
(2006 -- Rs 51,945)]
Glenmark Farmaceutica Ltda, Brazil [ Maximum during the year Rs.3,457
(2006 -- Rs.3,457)]
Glenmark Pharmaceuticals Nigeria Ltd., Nigeria [Maximum during
the year Rs. 2,380 (2006 -- Rs. 2,380)]
Glenmark Philippines Inc., Philippines [Maximum during
the year Rs 21,410 (2006 -- Rs. 48)]
Glenmark Impex LLC, Russia [ Maximum during the year Rs.145,337
(2006 - Rs. 13,428)]
Glenmark Pharmaceuticals (Australia) Pty.Ltd., Australia
[Maximum during the year Rs.1,820 (2006 -- Rs.1,345)]
2,373,417
33,263
51,945
3,457
3,457
2,380
2,380
20,937
48
143,358
13,428
1,820
1,345
1,137
1,137
22,309
41,260
250,420
452,468
19,566
212,555
243,178
81,401
3,986,257
141,365
260,259
61,856
51,759
124,873
99,930
3,402,554
1,569
977
1,053
15,295
1,238,880
716,976
3,997
3,546
2,879
16,902
843
17,117
-
8,977
8,806
7,394
Other Liabilities
119,185
89,666
Interest accrued but not due
465,964
234,023
1,857,123
1,096,926
230
6,488
6,718
257
7,815
8,072
CURRENT LIABILITIES
Acceptances
Sundry creditors - Small scale industrial undertakings [Refer Note (5) of Schedule 21]
- Others
Investor Education and Protection Fund shall be credited by
- Unclaimed Dividend
[There are no amounts due and outstanding to be credited to Investor Education
and Protection Fund.]
Advances from Customers
Payable to Subsidiaries
- Glenmark Farmaceutica Ltda, Brazil
- Glenmark Pharmaceuticals (Europe) Ltd., U.K.
- Glenmark Pharmaceuticals S.A., Switzerland
- Glenmark Pharmaceuticals Inc., U.S.A.
TOTAL
78
2006
2,501,993
Advance to Vendors
Advances recoverable in cash or kind or for value to be received
Advance tax (net of provision)
MAT Credit Entitlement [Refer Note (9) of Schedule 21]
Balance with Excise Authorities
Deposits
TOTAL
14.
2007
114,871
GM Pharma Ltd, India [ Maximum during the year Rs.1,137 (2006 -- Rs.1,137)]
Share Application Money - pending allotment
-Glenmark Philippines Inc., Philippines
[Pesos 27,016,368 (2006 - Pesos 49,787,051) ]
13.
Rs. In (000s)
PROVISIONS
Provision for Wealth Tax
Provision for Fringe Benefit Tax
TOTAL
Schedules Forming Part Of The Profit & Loss Account

2007
Rs. In (000s)
2006
15. SALES AND OPERATING INCOME [ Refer note (1)(vii),(7)(a) and (12)(b) of Schedule 21]
Sale of goods and IP assets*
Income from services
TOTAL
8,358,277
12,906
8,371,183
6,172,536
11,826
6,184,362
* includes Sales Tax and Excise Duty aggregating Rs 255,291 (2006 -- Rs 258,281) and Rs 344,802 (2006 -- Rs 623,495)
respectively.
16. OTHER INCOME

Lease Rent [tax deducted at source Rs.Nil (2006 -- Rs.101)]
Dividend received
Exchange gain
Export Incentive
Profit on sale of fixed assets
Miscellaneous income
TOTAL
2
16,351
11,195
35,096
62,644
480
1,210
8,285
23,986
800
18,357
53,118
Salary, wages and allowances

Labour charges
Consumption of raw & packing materials [Refer note (12)(d) and (e) of Schedule
21]
Purchase of Trading goods [Refer note (12)(c) of Schedule 21]
Excise duty paid
Sales tax
Power, fuel and water charges
Consumable stores [ Refer note (12)(e) of Schedule 21]
Repairs and maintenance - plant and machinery
Rent, rates and taxes
Other manufacturing expenses
144,291
8,083
128,844
2,292,713
113,224
4,350
141,243
1,627,924
676,505
289,605
255,291
151,653
126,425
28,619
11,155
313,221
554,960
258,281
86,556
63,358
26,997
90
14,323
(Increase)/Decrease in inventory
TOTAL
(507,969)
3,605,215
13,291
3,217,818
527,581
31,110
16,372
54,654
57,400
409,975
31,263
368,174
24,715
12,049
43,088
35,814
321,109
20,265
17. COST OF SALES
18. SELLING AND OPERATING EXPENSES

Salary and allowances
Directors salaries and allowances
Incentive and commission
Sales promotion expenses
Export Commission
79
Schedules Forming Part Of The Profit & Loss Account

Rs. In (000s)

Commission on sales
Travelling expenses
Freight outward
Telephone expenses
Rates and taxes
Provision for doubtful debts
Insurance premium
Electricity charges
Rent
Repairs & Maintenance
Auditors remuneration
- Audit fees
- Other matters
- Out of pocket expenses
Loss on sale of assets
Exchange Loss
Other operating expenses
TOTAL
2007
2006
14,972
310,179
147,286
19,202
10,887
25,000
24,090
8,880
72,093
81,090
13,220
269,355
108,495
19,026
19,352
20,000
12,965
9,758
27,386
73,383
3,500
30
103
28,021
350,043
2,223,731
2,700
40
97
896
201,584
1,603,471
112,022
281,567
393,589
97,780
76,727
174,507
12,208
151,887
164,095
229,494
31,507
84,836
116,343
58,164
19. INTEREST (Net)

On loans from banks
Other interest
Less: Interest Income
On deposits with banks [tax deducted at source Rs.91 (2006 -- Rs.396)]
On Loans given to Subsidiary
TOTAL
20. RESEARCH AND DEVELOPMENT EXPENSES [Refer note (1) (viii) of Schedule 21]
Salary and other allowances
Consumable & Chemicals
Electricity charges
Repairs and maintenance
Insurance premium
Other expenses
TOTAL
80
158,562
4,513
3,367
123,515
17,494
6,539
2,840
115,814
432,644
130,517
4,798
4,338
83,992
14,905
11,238
1,289
79,093
330,170
Notes to the Accounts

SCHEDULE 21 - NOTES TO THE FINANCIAL STATEMENTS

1)
SIGNIFICANT ACCOUNTING POLICIES

i) Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis and comply with the
Accounting Standards issued by the Institute of Chartered Accountants of India referred to in Section 211(3C) of the
Companies Act,1956.
ii) Fixed Assets and Depreciation

Fixed assets are stated at cost less accumulated depreciation. The Company capitalises all costs relating to the acquisition
and installation of fixed assets. Expenditure of revenue nature, incurred in setting up of new projects, is capitalised as an
indirect cost towards construction of the fixed assets.

Depreciation is provided using the straight line method, pro-rata to the period of use of assets, based on the useful lives
of fixed assets as estimated by management, or at the rates specified in Schedule XIV of the Companies Act, 1956,
whichever is higher.

Fixed assets having aggregate cost of Rs 5,000 or less are depreciated fully in the year of acquisition.

The Company has estimated the useful life of its assets as follows:
Category
Estimated useful life

(in years)
8 - 20
5-6
4 - 20
10
10
Plant and machinery

Vehicles
Equipments and air conditioners
Furniture and fixtures
Brands
Leasehold land and improvement is amortised over the period of lease.
iii) Foreign Currency Transactions
(a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions.
Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at
the date of the Balance Sheet. Gain/loss arising on account of differences in foreign exchange rates on settlement/
translation of monetary assets and liabilities are recognised in the Profit and Loss Account. Non-monetary foreign
currency items are carried at cost.
(b) Gain/loss on account of foreign exchange fluctuation in respect of liabilities in foreign currencies specific to
acquisition of fixed assets are adjusted to the carrying cost of the respective fixed assets. Such adjustments
are restricted to only acquisition of fixed assets from a country outside India in case related foreign currency
transactions are entered into on or after April 1, 2004.
iv) Investments

Long term investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than
temporary, in the value of the investments.
v) Inventories

Inventories of finished goods are valued at cost or net realisable value, whichever is lower. Cost of raw materials and
packing materials is ascertained on a first-in-first out basis. Cost of work-in-process and finished goods include the cost
of materials consumed, labour and manufacturing overheads. Excise and customs duty accrued on production or import of
goods, as applicable, is included in the valuation of inventories.
vi) Employee Benefits

Retirement benefits to employees comprise payments towards gratuity, superannuation and provident fund under the
schemes of the Company and encashment of leave. Annual contributions to the superannuation and provident funds are
charged to the Profit and Loss Account.

The employee leave encashment and gratuity schemes are administered through the Life Insurance Corporation of India and
Birla Sun life Insurance Company Ltd. respectively. Annual contributions as determined by the said Institutions are charged
to the Profit and Loss Account.
81
Notes
Notes
to the
to Accounts
the Accounts
SCHEDULE 21 - NOTES TO THE FINANCIAL STATEMENTS (Contd.)
82
vii) Revenue Recognition

The Company recognizes revenue on despatch of goods to customers. Revenues from services are recognized on
completion of such services. Revenue from IP asset/Marketing rights is recognized on transfer of ownership/right to use
in accordance with the terms of relevant agreements. Revenue from contract research being in the nature of product
development activities is recognized as per the terms of the agreement. Revenues are recorded at invoice value, inclusive
of excise duty and sales-tax, but net of returns and trade discounts.
viii) Research and Development

Capital expenditure on Research and Development (R&D) is capitalised as fixed assets. Development cost relating to
the new and improved product and/or process development is recognised as an intangible asset to the extent that it is
expected that such asset will generate future economic benefits. Other research and development costs are expensed as
incurred.
ix) Income-tax

Current Tax

Provision for Current Tax has been made in accordance with the Income Tax and Wealth Tax Laws prevailing for the
relevant assessment years.

Deferred Tax

Deferred income taxes are recognised for the future tax consequences attributable to timing differences between the
financial statement determination of income and their recognition for tax purposes. The effect on deferred tax assets and
liabilities because of a change in tax rates is recognised in the Statement of Profit and Loss using the tax rates and tax
laws that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such deferred tax assets can be realised.

Fringe Benefit Tax

Provision for Fringe Benefit Tax has been made in accordance with the Income Tax Laws prevailing for the relevant
assessment years.
x) Leases

Finance Leases

Assets acquired under finance lease are recognised as assets with corresponding liabilities in the Balance Sheet at the
inception of the lease at amounts equal to lower of the fair value of the leased asset or at the present value of the
minimum lease payments. These leased assets are depreciated in line with the Companys policy on depreciation of fixed
assets. The interest is allocated to periods during the lease term so as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period.

Operating Leases

Lease payments for operating leases are recognised as expense on a straight-line basis over the lease term. Lease
income from operating leases is recognised as income on a straight-line basis over the lease term. Initial direct costs are
recognised immediately as an expense.
xi) Borrowing Costs

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalised as a part of
the cost of the asset. Other borrowing costs are recognised as an expense in the year in which they are incurred.
xii) Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any
such indication exist, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset
or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in
the Profit and Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment
loss no longer exist, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
xiii) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities
Notes
Notes
to the
to Accounts
the Accounts
2)

on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognized in the periods in which the results are known/materialize.
xiv) Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires
an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources
is remote, no provision or disclosure is made.
EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders (net profit for
the year less dividends on preference shares) by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the weighted average number of shares outstanding are adjusted for
the effects of all dilutive potential equity shares from the exercise of options on unissued share capital and on conversion of FCC
Bonds.
The calculations of earnings per share (basic and diluted) are based on the earnings and number of shares as computed below.
Reconciliation of earnings
Profit after tax for the financial year
Less:
Preference dividends
Dividend tax on preference shares
Net profit attributable to equity shareholders for calculation of EPS
2007
1,348,043
Rs. In (000s)
2006
673,040
6,942
974
1,340,127
14,000
1,964
657,076
Shares
in 000s
119,058
Shares
in 000s
118,666
879
13,842
133,779
Rs
11.26
10.02
1,133
15,007
134,806
Rs
5.54
4.87
Reconciliation of number of shares

Weighted average number of shares:
For basic earnings per share
Add:
Deemed exercise of options on unissued equity share capital
Conversion of FCC Bonds
For diluted earnings per share
Earnings per share (nominal value Rs 2 each)
Basic
Diluted
83
Notes
Notes
to the
to Accounts
the Accounts

3)

SEGMENT INFORMATION
Business segments
The Company is primarily engaged in a single segment business of manufacturing and marketing of pharmaceutical formulations
and active pharmaceutical ingredients and is managed as one entity, for its various activities and is governed by a similar set of
risks and returns.
In the view of the management, the Indian and export markets represent geographical segments.
Sales by market -- The following is the distribution of the Companys sale by geographical market:
India
Other than India*
Total
2006-2007
4,988,060
3,383,123
8,371,183
Rs. In (000s)
2005-2006
4,427,964
1,756,398
6,184,362
* includes deemed exports aggregating Rs. 242,317 (2006 -- Rs. 385,072)

Assets and additions to fixed assets by geographical area The following table shows the carrying amount of segment assets
and additions to fixed assets by geographical area in which the assets are located:
Rs. In (000s)
India
Others*
India
Others*
2006-2007 2006-2007 2005-2006 2005-2006
Carrying amount of segment assets
Additions to tangible assets

84
13,528,675
545,196
2,686,454
-
10,722,578
682,313
1,325,272
-
*Others represent receivables from debtors located outside India including those related to deemed exports and cash and bank
balances of branches outside India.
4) RELATED PARTY DISCLOSURES

a) Parties where control exists

Wholly owned subsidiary companies:
Glenmark Dominicana S.A., Dominica Republic
Glenmark Impex LLC, Russia
Glenmark Philippines Inc., Philippines
Glenmark Farmaceutica Ltda, Brazil
Glenmark Organics Ltd., India
Glenmark Exports Ltd., India
GM Pharma Ltd., India
Glenmark Pharmaceuticals Inc, U.S.A.
Glenmark Pharmaceuticals Nigeria Ltd., Nigeria
Glenmark Pharmaceuticals Sdn.Bhd., Malaysia
Glenmark Pharmaceuticals S.A., Switzerland (GSA)
Servycal SA, Argentina
Glenmark Pharmaceuticals South Africa (Pty) Ltd., South Africa
Glenmark South Africa (Pty) Ltd
Glenmark Holding S.A., Switzerland (GHSA)

b) Related party relationships where transactions have taken place during the year

Subsidiary Companies:
Glenmark Pharmaceuticals Inc., U.S.A.
Notes
Notes
to the
to Accounts
the Accounts

Glenmark Pharmaceuticals S.A., Switzerland
Glenmark Holding S.A., Switzerland

c) Key management personnel


Mrs. B.E.Saldanha

Mr. Glenn Saldanha

Mrs. Cheryl Pinto

Mr. R.V. Desai

Mr. A.S. Mohanty

d) Transactions with related parties during the year

Rs. In (000s)
2006-2007 2006-2007 2005-2006 2005-2006

Subsidiary Company
1. Sale of finished products & Services
Glenmark Pharmaceuticals Inc., Philippines
2. Investment in Share Capital
*denotes amount less than Rs.1 ('000)
3. Advances given
Glenmark Pharmaceuticals ( Australia) Pty.Ltd., Australia
4. Loan given to
5. Loan repaid by
2,017,644
244,753
1,426,647
313,692
9,014
23,538
768,059
384,842
120,782
248,832
5,288
8,315
256,760
900
183,918
2,252
2,490
66,433
767
-
157,008
29,677
48,236
73,141
1,434
4,520
- *
6,148
475
5,673
54,077
7,606
2,393
8,945
4,081
2,380
1,345
27,327
1,699,875
1,270,596
279,836
21,410
128,033
1,127,276
1,113,848
13,428
947,411
667,575
279,836
39,275
39,275
85
Notes
Notes
to the
to Accounts
the Accounts
Rs. In (000s)
2006-2007 2006-2007 2005-2006 2005-2006
6. Interest on Loan Given

151,887
84,836
357
8,451
71,651
71,428
84,836
7. Reversal of Product Development Expenses to
207,965
Glenmark Pharmaceuticals Inc., U.S.A. [Refer note
207,965
(7) of Schedule 21]
8. Expenses paid on behalf of Glenmark Pharmaceuticals Ltd, India
11,540
24,511
1,756
7,394
7,670
2,114
17,117
9. Restructuring Entries*
3,266,541
Transfer of GSA investment to GHSA
106,761
Assignment to GHSA of Loan given to GSA
2,424,333
Assignment to GHSA of o/s Interest on loan given to
45,861
GSA
Conversion of Loan into Equity
689,586
10. Reimbursement of expenses to Glenmark Exports Ltd., India
43,883
131,917
*During the year, Company restructured the activities of Glenmark Pharmaceuticals S.A. (GSA), a wholly owned
subsidiary of the Company by transferring the shareholding of other step-down subsidiaries viz., Glenmark
Pharmaceuticals Inc, U.S.A., Glenmark Farmaceutica Ltda, Brazil, Servycal SA, Argentina, Glenmark Pharmaceuticals
Pty. Ltd. South Africa, to the new wholly owned subsidiary Glenmark Holding S.A., Switzerland (GHSA) consequent to
that Glenmark Pharmaceuticals S.A. (GSA) is now sourcing mainly R&D activities and Out licensing.
Key management personnel
Remuneration paid to these personnel have been disclosed in Note 11 of Schedule 21.
Working capital facility were partly secured by Directors personal guarantees upto October 19, 2005.
e) Related party balances
Rs. In (000s)
2006-2007 2006-2007 2005-2006 2005-2006

Receivable/(Payable) from/(to) wholly owned subsidiary companies
GM Pharma Ltd., India
3,283,998
557,826
615,590
1,137
1,137
(11,158)
(8,372)
1,277,382
151,703
39,150
7,757
119,204
2,493,016
2,373,417
(843)
6,014
2,380
2,380
1,820
1,345
143,358
13,428

86
4,503,673
Notes
Notes
to the
to Accounts
the Accounts

5)

OUTSTANDING DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS

The small scale industrial undertakings to whom amounts are outstanding for more than 30 days are:
Rs. In (000s)
2007
2006
Alcap Containers Pvt Ltd

Blown Enterprise
Corneilo Packaging
K K Alu Foil
K Laminates
Manju Industrial Ancillaries
Rajlaxmi Plastics
Super Label Mfg Co.
Varsha Plast
Mahesh Industry
Kraft-Pack Containers
Autofits
Crown Closures Pvt Ltd
D M Printers
Standard Packprints Pvt Ltd
Bina Packaging & Printers Pvt Ltd
M/s.Supreem Pharmaceuticals
M/s.Vijai Minerals
M/s.Farmson Pharmaceutical Gujarat Pvt. Ltd.
M/s. Vasudha Chemicals Pvt. Ltd.
M/s.Sumit Laboratories
M/s.Waxoils Pvt. Ltd.
M/s.Alcon Pharmaceuticals
M/s.Salycylates and Chemicals (P) Ltd.
Polypharm
Navyug Pharmachem
Menezes Chemicals
Padarsh Pharma
Amit Cellulose
Steller Chemicals
Sunshine Organics
Dhanashman
Shubhash Chemicals
Ven Petrochem
Amijal Chemicals
Bajaj Healthcare
559
799
677
73
639
346
2
62
15
2
1,439
44
255
98
1
1
106
4,129
11
538
87
294
309
409
287
4
386
195
169
16
703
117
894
83
5
21
88
117
769
174
3
216
14,710
Amount outstanding for less than 30 days
761
585
Total
977
15,295
The above information regarding small scale industrial undertaking has been determined to the extent such parties have been
identified on the basis of information available with the Company.This has been relied upon by the Auditors.
The information pertaining to micro and small enterprises as required to be disclosed in accordance with Section 22 of Micro,
Small and Medium Enterprises Development Act, 2006 is not readily ascertainable and hence not disclosed.
87
Notes
Notes
to the
to Accounts
the Accounts

6)
LEASES
a)
The Company had leased out its manufacturing facility at Panoli, Gujarat till 30th June, 2005 and the same has been
capitalised in the books of account in accordance with Accounting Standard 19 - Leases issued by The Institute of
Chartered Accountants of India in this regard. Depreciation has been provided based on the estimated useful life of the
asset.
(i) Details in respect of assets given on operating Lease
Rs. In (000s)
As at 31st March,
Gross Block
Leasehold Land
Factory Buildings
Plant and Machinery
Equipments
Accumulated depreciation
Leasehold Land
Factory Buildings
Plant and Machinery
Equipments

2007
2006
4,259
22,065
5,838
3,764
165
36,091
226
4,223
1,451
1,634
87
7,621
Depreciation [Upto June 2005]
330
(ii) The lease income of Rs.Nil (2006 -- Rs. 480) has been accrued on the basis of the lease agreement executed with
the lessees.
b)
7)
88
a)
The Company has taken on lease/leave and licence godowns/residential & office premises at various locations in the
country.
i)
The Companys significant leasing arrangements are in respect of the above godowns & premises (Including furniture
and fittings therein, as applicable). The aggregate lease rentals payable are charged to Profit and Loss Account as
Rent in Schedule 17 & 18.
ii)
The Leasing arrangements which are cancellable range between 11 months and 5 years. They are usually renewable
by mutual consent on mutually agreeable terms. Under these arrangements, generally refundable interest free
deposits have been given. An amount of Rs.31,193 towards deposit and unadjusted advance rent is recoverable from
the lessor.
The Company has entered into an arrangement with its Subsidiary Glenmark Pharmaceuticals S.A., Switzerland for
undertaking Contract Research/Development work for various Molecules and for which Patent application has been filed
by Glenmark Pharmaceuticals S.A..
As per the arrangement, the Subsidiary shall pay fees for such services on an arms length basis on quarterly basis and
submission of detailed invoice for the same.
The Company had entered into an arrangement with its Subsidiary Glenmark Pharmaceuticals Inc., U.S.A. for undertaking
product development work and to provide complete information concerning the product formulation.
b)
Notes
Notes
to the
to Accounts
the Accounts

As per the arrangement, the Subsidiary would pay fees for such services on an arms length basis on completion of
formulation development and pivotal bio-studies and acceptance of product dossier for the regulatory filings.
8)

9)

In view of Subsidiary Glenmark Pharmaceuticals Inc., U.S.A. and the Companys realigned commercial imperatives, during
the year both parties terminated the said arrangement by executing a Termination and Settlement Agreement. As per the
terms of this Agreement, in consideration of the Subsidiary relinquishing any and all present and future rights, claims, title,
property and interest in the aforesaid products, the Company has refunded the interim payments received from WOS under
the erstwhile arrangement.
The Finance Act, 2001 has introduced, with effect from Assessment Year 2002-03 (effective April 1, 2001), detailed Transfer
Pricing regulations for computing the taxable income and expenditure from International transaction between Associated
enterprises on an arms length basis. These regulation, inter alia, also require the maintenance of prescribed documents and
information including furnishing a report from an Accountant on or before the due date for filing the Income-tax return.
For the year ended March 31, 2006, the Company had undertaken a transfer pricing study and obtained the prescribed
certificate of the Accountant to comply with the said transfer pricing regulations which did not envisage any tax liability.
For the tax year ended March 31, 2007 the Company had carried out an analysis to comply with the said transfer pricing
regulations.
Taxation
Provision for current taxation for the Company of Rs.187,199 represents Minimum Alternate Tax pursuant to the provisions of
Section 115JB of the Income Tax Act, 1961 of India.
The Finance Act, 2005 inserted sub section (1A) to section 115JAA to grant tax credit in respect of MAT paid under section
115JB of the Act with effect from assessment year 2006-07 and carry forward the credit for a period of 7 years. In accordance
with the Guidance Note issued on Accounting For Credit Available in Respect of Minimum Alternative Tax (MAT) under the
Income Tax Act, 1961 issued by the Institute of the Chartered Accountants of India, the Company has recognised MAT Credit
which is expected to be set-off against the tax liability, other than MAT in future years. Accordingly, an amount of Rs.181,219
for the current year is included as MAT Credit Entitlement in Schedule 12 - Loans and Advances.
Rs. In (000s)
2006-2007
10)
(a)
CONTINGENT LIABILITIES NOT PROVIDED FOR

Bank guarantees
Disputed taxes/duties
Labour/Industrial disputes
Open letters of credit
Sundry debtors factored with recourse option
Channel financing with recourse option
Indemnity Bond
(Refer Note a)
(Refer Note b)
(Refer Note c)
(Refer Note c)
8,975
49,395
632
21,358
300,000
18,732
34,878
2005-2006
22,577
26,020
343
4,690
100,000
20,500
21,789
Note :
a)
In respect of Income-tax demand for the assessment years 1999-00, 2001-02, 2004-05 and 2006-07 aggregating
Rs.23,129 (000) on account of disallowances/non allowability of deduction under the Income-tax Act made by the
authorities which is appealed against.
b) The total amount related to LC outstanding as on 31st March, 2007.
c) The amount related to Credit facilities given by Bank against debtors.
(b) Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for as at March 31,
2007 aggregate Rs.52,323 (2006 -- Rs.54,124)
(c) The Companys subsidiary, Glenmark Pharmaceuticals Inc., U.S.A. (GPI) on June 02, 2006 has entered into an Agreement
with Paul Royalty Fund Holdings II (PRF) pursuant to which, PRF will pay upto USD 27 million to GPI for the development and
commercialization of certain products for US market.

Further, the Company has entered into a Master Services, License, Manufacturing and Supply Agreement with GPI to develop
and manufacture the aforesaid products, and also issued a financial guarantee in favour of PRF for an amount not exceeding
USD 27 million for the benefits under the said agreement.
89
Notes
Notes
to the
to Accounts
the Accounts

(d) During the year Glenmark Pharmaceuticals S.A., Switzerland (GSA) a subsidiary of the Company, has entered into a License
Agreement with Merck KGaA, Germany (Merck).

The Company being a Holding Company has provided a guarantee in favour of Merck, for execution, delivery and performance by
GSA as per the obligations contained in the agreement, being a Performance Guarantee amount is not ascertainable.
Rs. In (000s)
2006-2007
2005-2006
26,795
18,711
350
8,798
54,654
17,245
11,987
300
13,556
43,088
2006-2007
17,816
50
15,867
9,522
11,398
2005-2006
9,220
10,386
10,999
4,897
7,586
11) MANAGERIAL REMUNERATION

(a)
Paid/payable to directors*
Salaries, perquisites & Other benefits
Commission
Sitting Fees
Contribution to PF & Superannuation Fund
Name of Directors
1. Mr. Gracias Saldanha
2. Mrs. B. E. Saldanha
3. Mr. Glenn Saldanha
4. Mrs. Cheryl Pinto
5. Other Directors
* Excludes contributions to gratuity fund, which is based on acturial valuation.
(b)
Computation of net profits in accordance with Section 349 and Section 309(5) of the Companies Act, 1956.
Rs. In (000s)
Profit before taxation as per Statement of Profit and Loss
Add: Depreciation as per Statement of Profit and Loss
Provision for Doubtful Debts
Loss on sale of assets as per Statement of Profit and Loss
Less: Depreciation calculated under section 350 of the Companies Act, 1956
Profit on sale of assets as per Statement of Profit and Loss
Net profit in accordance with Section 349
Add: Managerial remuneration paid/payable to directors
Net profit in accordance with Section 309(3) of the Companies Act, 1956
Maximum managerial remuneration allowed under Section 198 of the
Companies Act, 1956, 11 per cent of the above
90
2006-2007
2005-2006
1,708,168
234,575
25,000
1,967,743
234,575
11,195
1,721,973
54,654
1,776,627
853,009
174,848
20,000
896
1,048,753
174,848
873,905
43,088
916,993
195,429
100,869
Notes
Notes
to the
to Accounts
the Accounts

12) CAPACITY, PRODUCTION, SALES AND STOCKS
(a)
Capacities and actual production (includes samples)
Product
Injectibles
Liquid orals
Lotions and externals
Ointments and creams
Solids and powders
Tablets and capsules
Bulk drugs
UoM
Installed Capacity
2006-2007 2005-2006
Ltrs
Ltrs
Ltrs
Kgs
Kgs
Nos
Kgs
5,595,000
450,000
1,093,000
236,000
1,030,000,000
300,000
4,875,000
450,000
966,000
105,000
810,000,000
300,000
Actual Production
2006-2007 2005-2006
166,574
3,237,853
270,868
425,015
82,831
980,935,691
90,671
139,668
3,590,325
682,073
533,728
265,738
738,009,868
69,727
Notes:
(i) The products of the Company are exempt from licencing procedures.
(ii) Installed capacity, being a technical matter, has not been verified by the auditors. However, the management has certified
the same.
(iii) Actual production includes goods manufactured at third party manufacturing facilities on loan licence basis and at leased
facilities.
(iv) Installed capacity of Liquid orals, Ointments and creams, Tablets and capsules has been increased due to production
started at Baddi plant.
(b)
Sales
Rs. In ('000s)
Product
UoM
Injectibles
Liquid orals
Solids and powders
Bulk drugs
Cardiac diagnostic services
Others
Total
Ltrs
Ltrs
Ltrs
Kgs
Kgs
Nos
2006-2007
Qty
Value
57,553
3,169,018
169,125
806,129
153,810
1,274,184,180
2005-2006
Qty
Value
162,280
123,960
1,056,527
3,487,105
584,117
693,156
1,103,546
521,691
291,907
273,688
3,972,847 1,246,232,084
1,085,081
12,906
101,972
8,371,183
1. Sales are net of sales returns.

2. Sales quantities does not include free issues, samples and breakages.
(c) Finished goods purchased (includes samples)
Product
UoM
165,341
979,501
638,268
971,989
131,694
2,416,719
729,063
11,826
139,961
6,184,362
Rs. In ('000s)
2006-2007
Qty
Value
2005-2006
Qty
Value
Injectibles
Liquid orals
Ltrs
Ltrs
2,209
157,488
779
32,069
3,286
97,875
23,204
16,130

Solids & Powders
Bulk Drugs
Ltrs
Kgs
Nos
Kgs
Kgs
432,818
528,664
352,680,706
163,926
22,525
100,742
32,472
334,940
98,680
76,823
74,462
7,738
539,603,232
19,608
23,242
4,133
161,768
84,744
Total
676,505
313,221
91
Notes
Notes
to the
to Accounts
the Accounts

(d) Raw and packing materials consumed (quantities in kgs)

Rs. In (000s)
Products
92
VALDECOXIB
ETORICOXIB
ROSUVASTATIN CALCIUM
LINEZOLID
TELMISARTAN
MUPIROCIN
CEFUROXIME SODIUM STERILE BP/USP
CEFDINIR
PROPYLENE GLYCOL I.P./ B.P.
TACROLIMUS
ACARBOSE
GLYCERINE REFINED IP/BP
SUGAR - S/30
ITRACONAZOLE PELLETS
PREGELATINISED STARCH BP/USP
SORBITOL SOLN 70% IP
BECLOMETHASONE DIPROPIONATE IP/BP
CEFUROXIME AXETIL 100% AMOROPHOUS
ESOMEPRAZOLE MAG TRIHYDRATE
KETOCONAZOLE IP/BP
CILASTAZOL
STRONTIUM RANELATE
MIGLITOL
LEVOFLOXACIN HEMIHYDRATE
METHYL 6-METHYLNICOTINATE
TETRA HYDRO FURAN(THF)
2N-PROPYL4METHYL61METHYLBENZIMIDAZOLE2Y
2-BUTYL-3-(3,5-DIIODO-4-HYDROXY
BENZOYL)
ETHYL ACETATE
METHYLENE CHLORIDE (MDC)
()-4-[1-HYDROXY-4-[4(HYDROXYDIPHENYLME
SIMVASTATIN (BP/USP)
PREGNA4,9(110-DIENE7,21DICABOXYLIC
ACID)
FEXOFENADINE
ALOIN (99% PURITY)
ROSUVASTATIN MMA SALT
ROSUVASTATIN CALCIUM
2006-2007
Qty
Value
2005-2006
Qty
Value
12
2,153
90
1,175
2,729
278
72
221,521
2,420
539
358,116
1,276,443
724
2,726
777,851
47,591
974
1,441
611
472
1,071
377
10,140
6,292
274,345
5,001
200
32,972
23,473
24,390
66,865
43,124
1,902
22,246
11,379
19,688
15,400
23,543
3,070
1,313
25,325
5,329
13,327
9,970
2,163
4,922
6,643
39,390
33,258
10,831
36,667
58,171
38
5,082
58
1,500
1,826
155
519
130
390,633
2,394
471
366,456
1,249,074
1,660
6,391
811,697
71,067
2,798
1,318
1,439
740
1,318
506
10,570
8,434
211,755
3,375
631
83,187
17,814
29,748
72,661
24,316
11,337
3,249
36,174
14,819
18,688
15,930
23,160
11,167
3,105
15,735
9,632
41,041
12,333
5,425
11,782
65,506
52,792
41,324
14,664
25,562
47,685
11,146
29,378
11,450
33,762
811,058
495,741
-
29,014
28,431
-
543,289
435,514
2,731
21,884
20,819
20,019
130
70
2,217
40,651
818
-
18,715
-
5,072
3,623
130
109
34,532
30,291
30,028
27,195
Notes
Notes
to the
to Accounts
the Accounts
Rs. In (000s)
Products
2006-2007
Qty
Value
METHOCEL K100M CR PREMIUM EP

AZITHROMYCIN DIHYDRATE USP 23
OFLOXACIN USP
EPLERENONE
OXCARBAZEPINE IH
FLUCONAZOLE DMF GRADE USP
ZONISAMIDE IH
DIACEREIN
TELMISARTAN IH
GABAPENTIN USP
OTHERS
TOTAL
7,601
1,588
5,382
43
1,186
1,976
2,441
1,453
2,729
26,533
2005-2006
Qty
Value
11,426
13,138
17,597
26,255
25,265
37,077
55,757
53,565
66,865
114,549
1,083,921
2,292,713

(e) Break-up of Materials and Consumable stores consumed

Rs. In (000s)
2006-2007
Value
Per cent
803,258
1,627,924
2005-2006
Value
Per cent
Materials
Imported materials
Indigenously procured
Total
526,030
1,766,683
2,292,713
22.94
77.06
100.00
338,347
1,289,577
1,627,924
20.78
79.22
100.00
Consumable stores
Imported
Indigenously procured
Total
126,425
126,425
100.00
100.00
63,358
63,358
100.00
100.00
(f)
Inventories of finished goods (includes samples)

Rs. In (000s)
Products UoM
Injectibles
Liquid orals
Lotions and
externals
Ointments
and creams
Solids and
powders
Tablets and
capsules
Bulk Drugs
Others
Total
Opening Stock
2006-2007
2005-2006
Qty Value
Qty Value
Closing Stock
2006-2007
2005-2006
Qty Value
Qty Value
Ltrs
Ltrs
Ltrs
23,852
339,467
97,675
21,340
44,196
24,835
23,679
276,991
70,839
23,151
46,922
25,049
21,662
460,094
339,729
9,845
59,727
29,931
23,852
339,467
97,675
21,340
44,196
24,835
Ltrs
58,877
41,135
58,478
50,761
78,868
76,121
58,877
41,135
Kgs
17,462
7,528
34,062
4,777
69,541
20,324
17,462
7,528
Nos
154,481,525 220,838 132,013,000 313,563 195,033,086 333,558 154,481,525 220,838

1,220
27,356
25,485
412,713
305
11,319
3,352
478,894
2,390
30,199
25,444
585,149
1,220
27,356
25,485
93
412,713
Notes
Notes
to the
to Accounts
the Accounts

13) VALUE OF IMPORTS ON CIF BASIS
Rs. In (000s)
2006-2007
2005-2006
93,194
766,464
859,658
115,330
363,921
479,251
3,037,553
153,868
3,191,421
1,408,138
115,323
1,523,461
66,587
7,656
67,343
70,788
19,865
149,794
382,033
26,218
62,542
95,011
27,547
14,314
121,765
347,397
2006-2007
2005-2006
2005-2006
6
932,524
746
2006-07
9
273,250
191
2005-06
8
272,500
191
2004-05
Capital Goods
Raw Materials
Total
14) EARNINGS IN FOREIGN CURRENCY
Export of goods calculated on FOB basis
Interest income
Total
15) EXPENDITURE IN FOREIGN CURRENCY
Travelling expenses
Professional & Consultancy charges
Export promotional expenses and export commission
Salary and related expenses
Product registration expenses
Others
Total
16) DIVIDEND REMITTANCE IN FOREIGN CURRENCY
Number of Non-resident Shareholders
Number of Equity Shares held by them
Amount of dividend paid (Gross), TDS Rs. Nil (2006 -- Rs Nil)
Year to which dividend relates
17) PRIOR YEAR COMPARATIVES

Prior years figures have been regrouped wherever necessary.
Signatures to the Schedules 1 to 21 which form an integral part of the Financial Statements.
Price Waterhouse
Partha Ghosh
Glenn Saldanha
Partner
94
Rajesh Desai
Director - Finance
Sanjay Chowdhary
Balance Sheet Abstract & Companys General Business Profile

ADDITIONAL INFORMATION AS REQUIRED UNDER PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956.
Rs. In (000s)
(a) Registration Details

Registration No 1 9 9 8 2
State Code 1 1

Balance Sheet Date
3 1
0 3
2 0 0 7

Date
Month
Year
(b) Capital raised during the year

Public Issue
Rights Issue

N I L
Bonus Issue
N I L
N I L
Private Placement
N I L
Preferential offer of shares under
Employee stock option scheme
Conversion of FCC Bond
3 4 6
2 3 2 9
(c) Position of mobilisation and deployment of funds

Total Liabilities including Shareholders Funds
Total Assets
1 6 2 5 1 9 4 3
1 6 2 5 1 9 4 3

SOURCES OF FUNDS

Paid-up Capital
Reserves and Surplus
2 4 0 1 1 6
4 2 6 1 4 7 3

Secured Loans
1 7 0 0 2 7 6
Unsecured Loans
7 3 8 7 1 4 0
APPLICATION OF FUNDS
Net Fixed Assets
Investments
4 3 3 2 0 9 0
1 3 9 0 9 5 5
Net Current Assets
Miscellaneous Expenditure
8 6 2 8 2 4 3
N I L

Accumulated Losses
N I L
(d) Performance of the Company

Turnover ( Total Income )
Total Expenditure
8 4 3 3 8 2 7
6 7 2 5 6 5 9

Profit/(loss) Before Tax
Profit/(loss) After Tax
1 7 0 8 1 6 8
1 3 4 8 0 4 3

Basic Earnings per Share in Rs.
Diluted Earnings per Share in Rs.
1 1 . 2 6
1 0 . 0 2

Dividend Rate %

40%
(e) Generic Names of Three Principal Products of Company

Item Code No ( ITC code )
Product Description

3 0 0 4 9 0 . 9 9
Clotrimazole

3 0 0 4 8 0 . 0 0
Terbutaline sulphate + Bromhexine Hydrocloride + Guaifenesin
Gabapentin
3 0 0 4 9 0 . 8 1

95
96
Glenn Saldanha
For and on behalf of of the Board of Directors

Rajesh Desai
Sanjay Chowdhary
Director - Finance
The financial year of the Subsidiary Companies ended

Date from which they became
subsidiary
3. b. Extent of interest of holding

Company at the end of the
financial year of the subsidiary
companies
4
The net aggregate amount of the
subsidiary companies Profit/
(Loss) so far as it concerns
the members of the holding
company:
4.a. Not dealt within the holding
companys accounts:
4.a.1. For the financial year ended 31st
March, 2007
4.a.2. For the previous financial years of
the Subsidiary Companies since
they became the holding companys
subsidiaries
4.b. Dealt within the holding companys accounts:
4.b.1. For the financial year ended 31st
March, 2007
4.b.2. For the previous financial years
of the subsidiary companies since
they became the holding companys
subsidiaries
3. a. Number of shares held by

Glenmark Pharmaceuticals Ltd.
in the subsidiary companies
at the end of financial year of
Subsidiary Companies
Name of the Company
No
100%
(6,536)
(51,116)
Nil
Nil
100%
Nil
7,378,445
Nil
Nil
5-Oct-99
31-Mar-07
Nil
Nil
(10,910)
(6,638)
100%
15-Sep-04
31-Mar-07
GM Pharma Glenmark
Limited
Organics
Limited
31-Mar-07
Glenmark
Farmaceutica ltda.
100%
28-Jan-04
10-Feb-04
100%
(4,168,185)
100%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(8,926,640) 116,971,886 (27,935,080) (4,251,808)
Nil
31-Mar-07
Glenmark
Pharmaceuticals Inc.,
USA
Nil
Nil
14,987,084
82,261,381
100%
Not Applicable.(Wholly
owned
subsidary
of Glenmark
Holding S.A.,
Switzerland)
34,55,121
175000
Not
Ordinary
shares of 200 Applicable
shares of GBP Pesos each
(33,365,819
1 each
shares of
US$ 1 each
Glenmark
Holding S.A.,
Switzerland)
31-Mar-07
31-Mar-07
Glenmark
Glenmark
PharmaPhilippines
ceuticals
Inc.,
(Europe) Ltd.
237,397,884 461,657,726 3,983,370
100%
7-May-01
31-Mar-07
Glenmark
Impex L.L.C
Not Applicable. (Wholly

owned
subsidary
of Glenmark
Holding S.A.,
Switzerland)
1,00,020
1,00,000
50,000
47,427,525 Not
Equity Shares Equity Shares Equity Shares Equity Shares Applicable
of Rs.10/of Rs.10/of Rs.10 each of RUB 1
(93,748,721
each fully
each fully
fully paid up. each.
shares of R$
paid up
paid up
1 each held
by Glenmark
Holding S.A.,
Switzerland)
10-Sep-96
31-Mar-07
Glenmark
Exports
Limited
1-Jun-04
31-Mar-07
100%
Nil
Nil
Nil
Nil
(3,837,370) Nil
(1,547,823) Nil
100%
31-Mar-07
100%
100%
Nil
Nil
Nil
Nil
(1,532,400) 980,311,930
31-Mar-07
Glenmark
Pharmaceuticals
(Australia)
Pty Ltd.
Nil
Nil
Nil
Nil
Nil
Nil
(5,727,514) (5,923,764) Nil
(9,454,606) Nil
Not Appli31-Mar-06
cable.(Wholly
owned
subsidary
of Glenmark
Holding S.A.,
Switzerland)
Not Ap2 shares of
plicable.
AUD 1 each
(219,696
shares of
Peso 1 each
held by
Glenmark
Farmaceutica ltda. and
15,872,330
shares held
by Glenmark
Holding S.A.,
Switzerland)
100%
100%
31-Mar-07
Glenmark
ServySouth
cal S.A.
Africa (Pty) Argentina
Ltd
(2,201,609) 1,240,779,361 422,423
100%
Not Applicable.
(Wholly owned
subsidary
of Glenmark
Holding S.A.,
Switzerland)
31-Mar-07
Glenmark
Pharmaceuticals S.A.,
Switzerland
Not Applicable.(Wholly
owned
subsidary
of Glenmark
Holding S.A.,
Switzerland)
297,511
Not Applicable Not
Ordinary
(30,00,000
Applicable
shares of RM shares of CHF (63,656
1 each.
1 each held
Ordinary
by Glenmark
shares of R
Holding S.A,
1.00 (Rand)
Switzerland). each held by
Glenmark
Holding S.A.,
Switzerland)
22-Jul-04
31-Mar-07
Glenmark
Glenmark
Dominicana PharmaS.A.
ceuticals
(Malaysia)
SDN.BHD
24,857,025 50 shares
Ordinary
of RD 1,000
shares of
each.
Naira 1 each.
28-Apr-04
31-Mar-07
Glenmark
Pharmaceuticals
(Nigeria)
Ltd.
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956, RELATING TO COMPANYS INTEREST IN SUBSIDIARY COMPANIES:
Section 212
31-Mar-07
Nil
Nil
3,476,000
(3,832,133)
100%
Nil
Nil
Nil
778,440,794
100%
Not Appli17-May-06
cable. (Wholly
owned
subsidary
of Glenmark
South Africa
(Pty) Ltd.,
Not Ap22,520,000
plicable.
Shares of
(100 Equity CHF 1 each
shares of R
1 each held
by Glenmark
South Africa
(Pty) Ltd.)
31-Mar-07
Glenmark
Glenmark
Pharmaceu- Holding S.A.
ticals South
africa(Pty.)
Ltd.
Corporate Information
Chairman (Non-Executive)
Mr. Glenn Saldanha
Directors
Mr. A. S. Mohanty
Mr. Rajesh V. Desai
Ms. B. E. Saldanha
Mr. J. F. Ribeiro
Mr. N. B. Desai
Ms. Cheryl Pinto
Mr. M. Gopal Krishnan
Mr. Sridhar Gorthi
Asst. Company Secretary
Mr. Sanjay Chowdhary
Registered Office
B/2, Mahalaxmi Chambers,
22, Bhulabhai Desai Road,
Mumbai - 400 026, Maharashtra.
Corporate Office
Glenmark House, HDO - Corporate Building,
Wing-A, B. D. Sawant Marg,
Chakala, Off Western Express Highway,
Andheri (East), Mumbai - 400 099, India.
Tel.: +91 22 6758 9999
Fax:+91 22 6758 9986
Site : http://www.glenmarkpharma.com
E-mail : webmaster@glenmarkpharma.com
Manufacturing Facilities
E-37, MIDC Industrial Area,
D- Road, Satpur, Nasik - 422 007,
Maharashtra.
Clinical Research Centre

Plot No. D-508, T.T.C Industrial Estate,
MIDC, Turbhe, Navi Mumbai - 400705.
Maharashtra.
3109-C, GIDC Industrial Estate,

Ankleshwar, Dist. Bharuch - 393 002,
Gujarat.
Biotech Research Centre

Chemin de la Combeta 5
2300 La Chaux-de-Fonds
Switzerland.
Plot No. 163-165/170-172,

Chandramouli Industrial Estate,
Mohol Bazarpeth, Solapur - 413213,
Maharashtra.
Plot No. 7, Colvale Industrial Estate,
Bardez, Goa.
Village- Kishanpura,
Baddi Nalagarh Road,
Tehsil: Nalagarh, Dist. Solan,
Baddi - 174101, Himachal Pradesh.
Plot No. A-80, MIDC Area, Kurkumbh,
Daund, Pune - 413802, Maharashtra.
Rua Assahi, 33-1 Andar CEP 09633-0110,
Rudge Ramos Sao Bernado Do Campo
Sao Paulo, Brazil.
Medicamenta a. s.
Fibichova 143, 566 17
Vysok Mto, Czech Republic.
R & D Centers
Plot No. A-607, T.T.C. Industrial Area,
M.I.D.C., Mahape, Vashi,
Navi Mumbai - 400 705,
Maharashtra.
Plot No. C-152, MIDC Sinnar Industrial Area,
Malegaon, Dist. Nasik - 422 113,
Maharashtra.
Auditors
Price Waterhouse
Mumbai.
Cost Auditors
Sevekari Khare & Associates
Mumbai.
Solicitor
Kanga & Co., Mumbai
Trilegal, Mumbai.
Registrar & Transfer Agents
Karvy Comutershare Pvt. Limited
Plot No. 17 to 24, Near Image Hospital,
Vittalrao Nagar, Madhapur,
Hyderabad - 500 081.
Tel: 040-23420815 ; 23420818 - 828
Fax: 040-23420814
Bankers
Bank of India
Adjust Spine as per required
International Operations
India
20. Afghanistan
45. Iraq
70. St. Lucia
Brazil
21. Angola
46. Ivory coast
71. Sudan
22. Barbados
47. Jamaica
72. Tanzania
23. Belarus
48. Laos
73. Thailand
24. Belize
49. Madagascar
74. Togo
25. Benin
50. Malawi
75. Trinidad & Tobago
26. Bolivia
51. Maldives
76. Tunisia
27. Botswana
52. Mali
77. UAE
28. Burkina Faso
53. Mauritania
78. Uganda
29. Burundi
54. Mauritius
79. Venezuela
30. Cameroon
55. Moldova
80. Yemen
31. Central African Republic
56. Mozambique
81. Zambia
32. Chad
57. Myanmar
82. Zimbabwe
33. Chile
58. Nepal
83. Uzbekistan
34. Congo Brazzaville
59. Nicaragua
84. Turkmenistan
35. Costa Rica
60. Oman
85. Kyrgyzstan
36. Dominica
61. Papua New Guinea
86. Honduras
37. Ecuador
62. Peru
87. Egypt
38. Eritrea
63. R D Congo
88. Tajikistan
39. Ethiopia
64. Rwanda
89. Azerbaijan
40. Fiji
65. Senegal
41. Grenada
66. Seychelles
42. Haiti
67. Singapore
43. Hong Kong
68. Sri Lanka
44. Indonesia
69. St. Kitts
Regional / Representative Offices

1. Argentina
2. Australia
3. Brazil
4. Cambodia
5. Czech Republic
6. Dominican Republic
7. Ghana
8. Kazakhstan
9. Kenya
10. Malaysia
11. Nigeria
12. Philippines
13. Russia
14. South Africa
15. Switzerland
16. UK
17. USA
18. Vietnam
19. Ukraine
Annual Report
2006-07
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Czech Republic
Printed at Print House
Manufacturing Sites
As on August 2007

Annual Report07

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Glenmark Pharmaceuticals Limited

70. St. Lucia

46. Ivory coast

75. Trinidad & Tobago

28. Burkina Faso

31. Central African Republic

34. Congo Brazzaville

35. Costa Rica

61. Papua New Guinea

43. Hong Kong

68. Sri Lanka

69. St. Kitts

Regional / Representative Offices

Printed at Print House

Glenmark Pharmaceuticals Limited

Annual Report 2006-2007

Glenmark Pharmaceuticals Limited

Annual Report 2006-2007

Dyax Corp. and Glenmark enter into Funded Research

Glenmark Purchases Rights to Two Therapeutic

Merck KGaA and Glenmark Pharmaceuticals Announce

*Headlines as they appeared in the press releases by the company

Formulations - Latin America

Formulations - Latin America

Formulations - Semi-Regulated Markets

Formulations - Semi-Regulated Markets

NCE (Out-Licensing Revenues)

Glenmark Confirms ANDA Filing with a Paragraph IV

Research and Development

For the US market

Conclude 2 licensing collaborations across its molecules

(USD 419 Mn ) and a net profit target of Rs. 5163.75

File 12-14 US DMFs

Evaluate in-licensing opportunities for NCEs/NBEs to

Formulations - Semi-Regulated Markets

NCE (Out-Licensing Revenues)

NCE (Out-Licensing Revenues)

Glenmark Concludes Deal to Acquire Medicamenta a.s.,

Annual Report 2006-2007

Glenmark Pharmaceuticals Limited

Glenmark Pharmaceuticals has posted consolidated revenues of

Czech Republic with sales and marketing operations in both

Conclude 1-2 more acquisitions in the branded generic

Evaluate/conclude acquisition opportunities in high

Average conversion rate for projection of Rs. 41.31 / USD 1.00

Dyax Corp. and Glenmark enter into Funded Research

Glenmark Purchases Rights to Two Therapeutic

Merck KGaA and Glenmark Pharmaceuticals Announce

*Headlines as they appeared in the press releases by the company

Formulations - Latin America

Formulations - Latin America

Formulations - Semi-Regulated Markets

Formulations - Semi-Regulated Markets

NCE (Out-Licensing Revenues)

Glenmark Confirms ANDA Filing with a Paragraph IV

Research and Development

For the US market

Conclude 2 licensing collaborations across its molecules

The Company has set a consolidated target of Rs. 17308.89 Mn

(USD 419 Mn ) and a net profit target of Rs. 5163.75 Mn (USD

File 12-14 US DMFs

Evaluate in-licensing opportunities for NCEs/NBEs to

Formulations - Semi-Regulated Markets